tf^vA  l 


I 


To  the  Common  People  of  North 
Dakota,  whom  I  love  so  much  and 
who  have  so  often  honored  me,  I 
affectionately  dedicate  this  book. 


. 

-.  . 
2 


FARMERS    PRESS    *&&^&s>     MANDAN      N.    O. 


ITS  BIRTH,  ACTWTlEfc  AND  i  K  VDKX-          3 


INTRODUCTORY 

WHY  THIS  BOOK  WAS  WRITTEN 


Two  books  have  been  written  on  the  Non-partisan 
League,  one  by  Charles  Edward  Russell,  not  lonsr  ago  a 
candidate  for  Mayor  of  New  York  City  on  tbe  So- 
cialist ticket,  who  has  been  one  of  the  leading  radical 
Socialists  of  the  country;  and  of  Russell,  A.  <  £  wn- 
ley  himself  testified  under  oath,  on  page  IT'.1  :  the 
transcript  of  the  record  in  his  bankruptcy  pror  ius, 
as  follows:  "I  remember  now,  Charles  <ard 

Russell  WAS  EMPLOYED  TO  START  Till.  ^ON- 
PARTISAN  LEAGUE.  He  was  with  us  dnrin_  -:ver- 
nonths  that  fall.  I  recall  now.  lu  January  or 
February  he  went  to  California.  This  money.  3  :  re- 
member, was  sent  to  him,  your  Honor,  in  set T  Client 
of  all  or  part  of  our  account  with  him  at  tli  :ime. 
He  was  an  employee  of  the  organization;  as  I  remem- 
ber, his  mission  in  Seattle  was  to  secure  a  n<  , .-a per 
man  on  his  way." 

So  much  for  Russell  and  his  book  boosting    M  nvn- 
ley  and  his  fellow  Socialists. 

The  other  book  was  written  by  Herbert  E.  Gaston, 
orted  from  the  State  of  Washington  ON  THE  RE- 

1907 


4  T{I;-;  \u.\r.\irnsAN  LK 

roALMKNDATlOX  <>K  DAVID  C.  COATKS.  WHO  IN 
1905  HELPED  BILL  HAVWOOD  ORGANIZE  THE  I. 

W.  W.  Oast  on  has  been  on  the  payroll  of  Townley  or 
)iis  Milled  associations  continually  for  almost  the  entire 
legnth  of  time  that  the  Socialists  have  fought' to  secure 
control  of  North  Dakota,  and  at  present  is  editing 
newspapers  and  spreading  propaganda  for  this  outfit 
at  so  much  per  year. 

The  public  can  judge  for  itself  the  purposes  for 
which  these  books  were  written.  Whether  these  auth- 
ors were  serving  their  monied  masters,  Town  ley,  Lemke 
and  Wood,  or  whether  it  was  their  intention  to  give 
the  prop!*-  of  the  United  States  THE  REAL  FACTS? 

These  two  books  are  a  fair  sample  of  the  propaganda 
with  which  the  United  States  has  been  flooded  these 
last  years— unreliable,  one-sided,  unfair  and  designed 
to  prejudice  the  minds  of  the  readers.  These  authors' 
present  or  past  employers,  Townley.  Lemke  and  Wood 
who  used  the  farmers'  money  and  credit  to  fill  these 
writers'  stomachs,  are  hailed  as  saviors,  heroes,  of  god- 
like visaiiv  and  almost  divine  iuspriation,  while  all 
others— no  matter  how  honest— ARE  CLASSED  AS 
"15 Hi  lllX".  "CROOKS,"  "TOOLS"  AM) 
MIES  OF  THE  PEOPLE." 


ITS  nrrmr,  A<Tivmi«:s  AN:I>  LEADKKS 


PREFACE 

In  10ir>,  there  a  p| )c;.i red  in  tlie  State  of  North  Da- 
kota what  was  first  considered  by  all  to, be. a  farmers7 
political  organization— an  organization  which  soou 
captured  the  Government  of  this  Commonwealth. 
Since  thru  it  lias  spread.  Today  it  is  active  in  fifteen  or 
>i  \i-een  states  a  iid  is  spreading  to  others.  I  was  born  on  K. 
North  Dakota  farm  and  for  years  have  been  promin- 
ently identified  with  the  politics  of  my  native  state.  I 
have  always  been,  a  progressive  Republican,  an  earnest 
,-idvocale  of  the  Society  of  Equity  and  all  good  forms 
of  co-operation,  both  among  fanners  and  laboring 
men. 

I  have  been  closely  connected  with  the  Non-Partisan 
League,  having  at  its  very  first  convention  been  en- 
dorsed by  it  for  Attorney  General,  after  that  having 
been  elected  and  later  again  endorsed  and  re-elected. 
Shortly  after  my  re-election.  1  voluntarily,  because  of 
their  lack  of  faithfulness  to  their  members";  their  auto- 
cracy and  their  political  rottenness,  commenced  war 
on  the  leaders  of  the  League  in  an  attempt  to  get  real 
\i\\  paying  farmers  "and  nut  Socialists  at  the  head  of  it. 
1  feel  that  I  am  in  a  pec.ul.iar  position  to  warn  the  peo- 
ple of  this  country  of  this  danger  to  our  beloved' Re- 
public. 

I  believe  that  the.  Tuiied  States  of  America  is  curs-- 
ed  with  many  economic  evils.  I  hate  profiteering  and 
gambling  in  options.  I  detest  the  men  who  at  harvest 
time  force  down  the  price  of  wheat,  rye.  flax,  oats  and 
when  the  prod-uee.r.s  are  forced  to  sell,  pay  them  a  low 
price  and  then  charge  the  consumers  exhorbitant  sunns 
when  they  come  to  buy.  1  abhor  the  employer  who  will 
not.  pen.uit  coller.tiv«  bargaining  OH  the  pan  ©f  his 
or  the  employer  who  is  epposed  to  a'  just 


6  THE  NONPARTISAN  LEAGUE 

Workmen's  Compensation  Fund.     I  anathematize  the 
sulking  shyster  lawyer    who     garnishees    workmen's 
wages  for  trifling  debts— but  most  of  all  I  distrust 
those  men  who  in  the  name  of  reform  make  capital  of 
present  economic  ills,  and  by  lying,  sneaking,  black- 
brained,  insiduous  propaganda  arouse  the  farmers  a- 
gainst  the  laborers,  workmen  against  their  employers, 
and  hard  working  fellow  human  beings  against  each 
other.     God  knows  we  need  reformers — but  we  need 
men  and  women  who  will  build  up,  not  tear  down  char- 
acter; who  will  lift  up,  not  lower  morals;  who  will 
make  this  country  a  better,  not  a  worse  place  to  live 
in;  who  will  help  the  laboring,  business,  farming  and 
professional  men,  not  harm  them;  who  will  bring  sun- 
shine, not  darkness,  into  the  lives  of  the  people;  who 
will  have  for  their  ideal  not  how  much  money,  how 
much  power,  how  much    loot    can    I    get  sout  of  thi 
world  BUT    WHAT    CAN  I  DO  TO  BETTER    THE 
LOT  OF  MANKIND. 

I  am  writing  this  book  in  North  Dakota.  I  am  the 
Attorney  General  of  the  state.  Under  the  terms 
of  the  " anti-liars"  act,  the  full  text  of  which 
you  will  find  in  succeeding  pages,  if,  in  dealing  with. 
the  institutions,  departments,  or  industries  of  the  State 
Government,  I  make  one  single  statement  in  this  book 
which  is  not  true,  I  CAN  BE  PLACED  IN  THE  PENI- 
TENTIARY FOR  ONE  YEAR.  This  ought  to  satisfy 
my  worst  enemy,  adversary,  or  evil  wisher. 


rrs  nnrm.  ACTIVITIES  AND  LEADERS      7 

THE  LAW  THAT  TIIK  SOCIALIST  LEADERS 
HAD  TIIKlIi  LKtJlSLATTRK  PASS  TO  FRIGHTEN 
STATK  OFFICIALS  AVI1O  OPPOSED  SOCIALISM. 
TIIKKK  IS  \o  OTIIKK  LAW  LIKE  IT  IN  THE 
UNITED  STATES. 

•'An  Act  Making  It  a  Felony  for  Any  Slate  Official 
to  AYilfully  Publish  False  Statements  With  Reference 
TO  Any  State  Department,  Institution  or  Industry  and 
Providing  the  Manner  in  Which  Such  Gases  Under  the 
Provisions  of  This  AH  Shall  be  Tried  and  Providing  the 
Penalty  Therefor. 

1.  Xo  state  official  shall  wilfully  publish  any  false 
Ma  lenient  in  regard  to  any  of.  the  state  departments, 
institutions  or  indusi  ries  which  said  false  statements 
shall  tend  to  deceive  the  public  and  create  a  distrust  of 
The  state  officials  or  employees  in  charge  of  such  de- 
partments, institutions  or  industries,  or  which  tends  to 
obstruct,  hinder  and  delay  the  various  departments 
institutions  and  industries  of  the  state. 

'2.  The  District.  Court  in  any  county  in  the  statG 
win- re.  any  such  false  statements  shall  have  been  utter- 
ed or  otherwise  published,  shall  have  jurisdiction  to 
try  any  case  brought  under  the  provisions  of  this  Act. 

•  !.  In  all  prosecutions  under  the  provisions  of  this, 
Act  and  tried  by  a  jury  such  jurors  shall  be  selected 
from  various  parts  of  the  county  in  Avhich  such  case 
shall  be  1  ried. 

4.     Any   person   violating  the  provisions  oS'  this  Act 
shall  be  deemed  guilty  of  a  felony  and  shall  be  punish- 
ed by  imprisonment  in  the  state  penitentiary  for  a  term 
of  one  year  or.  by  a   fine  of     Five     Hundred     Dollars 
*:,<MMM)i.  or  l)()th. 

.1.  All  AH*  or.-.parts  -of  Acts  inconsistent  with  ffie 
provisions  of  this  Act  are  hereh\  repealed. 

Approved  by  (Jovernor  Fra/icr  9:1.~>  P.  M..  Decem- 
ber 11.   1919. 


8  THE  NONPARTISAN  LEAGUE 

The  above  is  plain.  I  hereby  serve  notice  that  I 
have  MAILED  a  copy  of  this  book  to  every  State's  At- 
torney in  every  county  in  North  Dakota.  I  have  WIL- 
FULLY PUBLISHED  the  book  in  every  county  in  the 
State.  I  challenge  arrest.  I  hereby  call  upon  any 
State's  Attorney  in  the  State  of  North  Dakota  to  do 
his  duty  and  arrest  me  in  case  any  of  the  leaders  of 
the  Nonpartisau  League  or  the  Governor  will  sign  the 
criminal  complaint. 

And,  readers,  remember  that  under  the  criminal  laws 
of  North  Dakota  A  FELONY  DOES  NOT  OUTLAW 
FOR  THREE  YEARS.  Townley  and  Lemke  have 
made  a  VIOLATION  OF  THIS  LAW  A  FELONY. 
Lemke  is  now  a  candidate  for  the  office  of  Attorney 
General. 

IF  HE  IS  ELECTED,  any  time  during  THE  NEXT 
TWO  YEARS,  during  the  time  that  he  is  Attorney 
General,  HE  CAN  ARREST  ME. 

This  ought  to  satisfy  the  most  rabid  Socialist. 
And  if  I  am  not  convicted,  it  will  be  conclusive  proof 
to  the  thousands  of  farmers  in  North  Dakota  that  what 
I  say  in  this  book  is  the  truth. 

Under  the  new  law  passed  at  the  request  of  Townley 
and  Lemke,  Governor  Frazier  HAS  THE  POWER  TO 
APPOINT  Special  Assistant  Attorneys  General. 
Under  this  law  Frazier  has  appointed  Lemke,  one  of 
the  leaders  of  the  league  as  assistant  Attorney  General. 
Likewise  there  are  several  State's  Attorneys  who  are 
violently  opposed  to  me  politically.  LEMKE  OR  ANY 
ONE  OF  THESE  CAN  ARREST  ME  RIGHT  XOW. 

I  SAY  TO  THESE  MEN— ALL  OF  THEM— COME 
ON.  THE  TIME  FOR  CALLING  NAMES  IS  AT  AN 
END.  THE  TIME  FOR  ACTION  IS  HERE. 

WILLIAM  L ANGER. 
Attorney  General  of  tli* 
State  of  Norib    Dy.UcM;i. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS        9 

CHAPTER  I 
WHAT   CAUSED   IT. 

North  Dakota  politically  has  always  been  a  progres- 
sive State — it's  people  are  of  almost  every  nationality 
.under  the  sun — the  Scandinavian  element  predominates, 
approximately  forty  per-cent  being  of  that  race ;  about 
th.Tty  per-cent  are  of  Teutonic  origin  and  the  other 
thirty  per-cent  are  a  mixture  of  Irish.  Fins,  Scotch. 
Italian,  Welsh,  Polish,  Austrian*,  etc.  These  races 
have  intermingled  and  inter-married.  The  result  is 
that  hardly  anywhere  in  the  world  do  you  find  a  lower 
i !»•-.-: th  rate  or  healthier  people  than  in  North  Dakota. 

7he  schools  in  this  state  rank  among  the  very  high- 
est in  the  educational  circles  of  this  country.  Splen- 
did consolidated  schools  adorn  the  feertile  prairies. 
In  one  county,  Barnes,  which  is  fifty  by  thirty  miles 
in  area  and  which  has  but  eighteen  thousand  and  some  * 
population,  there  are  TWENTY-ONE  consolidated 
schools,  and  these  were  practically  all  built  years  ago 
"~l^ng  before  the  advent  of  the  Socialists. 

Whenever  any  state  adopted  a  progressive  law,  the 
farmers  and  business  men  of  the  State  of  North  Da- 
kota, through  their  representatives  in  the  Legislature, 
adapted  that  progressive  measure.  No  where  in  the 
T'nited  States  had  LaFollette's  forward-looking  laws 
a  lieartier  welcome  than  in  North  Dakota.  From  the 
primary  law  down  we  have  them  all.  In  no  state  gov- 
ernment had  there  l»cen  less  jrraft,  than  in  North  Da- 
kota. In  over  thirty  years  of  statehood,  but  two  offi- 
cials had  gone  wronjr.  of  these  one  was  prosecuted  and 
convicted,  and  the  other  died  before  prosecution  could 
lie  Commenced. 

North  Dakota  is  predominatingly  agricultural ;  about 
eighty-five  percent  of  its  people  living  in  the  country. 
Last  year,  1919,  was  a  poor  one,  yet  we  raised  53,613,- 
000  bushels  of  wheat;  3,800?000  bushels  of  flax;  14,- 


10  T1!K  NONPARTISAN  LEAG1 

9r,0.()()0  bushels  of  barley;  :>.*.  400.000  bushels  of  oats. 
and  15,:)(i(),(K)0  bushels  of  rye.  \Ve  have  pure  bred 
herds  of  nil  lie  and  horses  within  our  borders.  AVe 
raise  hogs,  corn,  clover  and  alfalfa.  But  our  best  crop 
is  our  line,  healthy  children,  Xo  where  can  you  find 
ihein  prettier  or  healthier— this  is  North  Dakota. 

The  state  being  almost  exclusively  agricultural,  we 
are  met  with  the  problem  of    marketing     our   -grain. 
This  is  now  and  has  been  for  years  our  chief  problem. 
The  elevator  combine  saw  an  opportunity  for  profit. 
This  vast  monopoly  placed  a  heavy  burden 'upon  the 
farmers  and  it  has  been  a  continual  struggle  for  the 
farmers  to   get  what  they  have  been  entitled  to.     In 
territorial  days  and  for  many  years  after  the  state  was 
oryani/ed.  Hie  railroads  reserved  the  right  to  control 
both  directly  and   indirectly  elevators  located  on  the 
railroad  right-of-way.  -  Later  laws  were  passed  grant- 
ing this  right,  to  private  concerns.     After  several  at- 
tempts, the   farmers   had   laws  passed   compelling  the 
railroads  to     build     loading     stations     so     that     they 
could  load     their    wheat     directly  into  thec  ars.     The 
railroad  companies  were  able  to  spot  care  at  these  load- 
ing stations,  but   the  shortage   of  cars  was   suddenly 
appalling.     The  farmers  got  some  more  legislation  pass- 
ed and  they     commenced     to     join     together,     built 
co-operative  elevators  on  the  rail  road  right  of  wa\  . 
passed  legislation  compelling  the  railroad  romp, 
furnish   ears  to  these  elevators. 

Thus  they  .progressed   sloAvly  in  -the  face  of  vie 
opposition.     In    ]915   there    were    approximate! 
hundred  of  these  co-operative  elevators  in  Xorth  Dako- 
ta having  an  average  number  of  stockholders  of  about 
fifty  to  an  elevator.     Old  line  companies  had  appv 
mately    fourteen  hundred  elevators  in  Xorth  Dakota. 
In  some  of  the  towns  there  were  all  the  way  from  three 
to  nine  elevators. 

But  even  this  did  not  solve  the  problem  for  the  ; 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      11 

ers,  for,  regardless  of  the  elevators  the  grain  was  ship- 
ped, from,  nearly  all  the  grain  had  to  go  outside  the 
borders  of  North  Dakota  to  the  terminals  and  it  fell 
into  the  hands  of  the  grain  gamblers.  Approximately, 
according  to  statistics,  one  out  of  every  three  hundred 
deals  in  the  Chamber  of  Commerce  was  bone  fida — the 
two  hundred  ninety  nine  were  gambling  transactions. 

It  was  about  this  time  that  George  S.  Loftus  of 
.Minnesota  appeared  on  the  scene. 

Mr.  Loftus  was  the  embodiment  of  energy.  When 
he  :  rst  came  to  North  Dakota  to  lead  the  fight  he  was 
in  his  prime,  perhaps  forty  one  or  forty  two  years  of 
age.  He  was  a  tall,  healthy,  robust,  virile  man.  He 
was  •  s  fearless  as  lie  was  uncompromising.  He  stump- 
ed North  Dakota  in  behalf  of  the  Equity  Co-operative 
Exchange  of  St.  Paul,  Minnesota.  The  fight  on  Mr. 
Loftus  was  waged  without  regard  to  cost.  The  lead- 
ins  newspapers  of  the  state  deliberately  lied  about  him. 
l\i<  methods  were  sneered  at.  He  was  ridiculed,  mai- 
igiK-"!.  cartooned  and,  figuratively  speaking,  crucified. 
He  :  right  NOT  FOR  SOCIALISM  AND  PERSONAL 
POAYER,  but  he  fought  these  and  his  principles  were 
the  i>|)osite.  Instead  of  being  an  autocrat  in  control 
of  a  organization,  he  was,  and  he  always  remembered 
it  a]  !  bo;;s;ed  of  it,  an  employee. 

Lol'iiis  was  backed  by  United  States  Senator 
Hob-  i  LaKollette  of  Wisconsin,  by  John  M.  Anderson 
of  St.  Paul  and  by  I  Benjamin  Drake  of  Minneapolis,  by 
••ssman  (ieoi-'!<-  M.  Young  of  Valley  City,  and  by 
others  It  took  money  to  promote  the  cooperative 
idea?  as  embodied  in  this  company.  It  was  Loftus' 
dream  to  make  it  the  largest  co-operative  grain  con- 
cern in  the  world  and  have  it  head  the  establishment 
of  a  new  Board  of  Trade  at  St.  Paul,  Minnesota. 

Repeatedly  I  had  the  pleasure  of  speaking  with  him 
on  the  same  platform,  and  no  enthusiastic  political  con- 


12  THE  NONPAKTISAN   LKAtil'K 

vention    ever  contained    a  finer   spirit.   <>!'   co-operation 
than    was    ordinarily    found    in    some    of    Mr.    LoftUS 
meet  ings. 

Away  back  in  1893,  the  Legislature  of  North  Dakota 
passed  an  act  to  provide  for  the  purchase  of  a  site,  and 
for  the  erection  of  a  state  elevator  at  Duluth,  Minnea- 
sota,  Superior  or  West  Superior,  Wisconsin,  for  public 
storage  and  the  shipment  of  wheat,  and  the  regulation 
thereof,  and  to  appropriate  money  for  that  purpose. 
Although  this  law  had  been  passed,  nothing  had  ever 
been  done  by  the  succeeding  legislatures.  Twenty  Ion- 
years  had  passed  and  still  no  terminal  elevators  had 
been  built.  This  is  all  the  more  remarkable  because 
of  the  fact  that  at  that  time  the  legislatures  were  com- 
posed almost  entirely  of  farmer  members. 

in  1912  the  people  voted  on  the  following  question: 
"Empowering  ihe  Legislative  Assembly  to  enact  law< 
providing  for  the  erection  and  operation  of  terminal 
'jTaiii  elevators  in  Minnesota  or  Wisconsin,  or  both. 
The  vote  was  as  follows: 

Yes    56.4s- 

No    18.864 

Again    nothing   was   done   and  in  3914   the   farmers 

voted  upon  the  question  of  "That  the  legislative  assem- 
bly is  hereby  authori/ed  and  empowered  to  provide  by 
law  for  the  erection,  purchasing  or  leasing  and  oper- 
ation of  one  or  jiH>re  terminal  grain  elevators  in  the 
State  of  North  Dakota,  to  be  maintained  and  operated 
'in  s'.-.ch  a  manner  as  the  Legislative  Assembly  shall 
prescribe  and  provide  for  the  inspection,  weighing  and 
grading  of  grain  received  at  snch  elevator  or  elevators. 
The  vote  was : 

V«'*  51,507 

No    18;48:: 

Truly,   as  the   Socialists  say   the   old    political   gantr- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS 


indSiorth  Dakota  TREATED  THE  BALLOT  BOX 
AS  A  JOKE. 

The  failure  of  the  legislature  to  provide  ter- 
minal elevators  was  the  opportunity  which  was  seized 
by  the  Socialists  to  organize  the  farmers  of  North  Da- 
kota into  what  is  known  as  the  Farmers  Nonpartisan 
Political  Organization. 

There  is  absolutely  no  question  but  that  a  great 
many  legislators  would  have  voted  for  state  terminal 
elevators  who  voted  against  them,  had  not  Mr.  Loftus 
made  an  attack  upon  the  legislature.  The  afternoon 
before  the  bill  was  to  come  up  in  the  House,  some  four 
hundred  farmers  came  to  Bimsarck,  being  summoned 
here  by  the  le'aders  of  the  Equity. 

A  board  had  gone  to  Mr.  Loftus  and  had  asked  him 
to  submit  any  plan  .lie  might  have  for  making  terminal 
elevators  a  success.  Mr.  Loftus  refused  to  submit 
any  plan,  charging  that  the  investigating  committee 
was  biased  and  then  he  came  t<»  IVismarck.  The  investi- 
gating committee  claimed  .that  it  was  fair,  fliat 
they  were  looking  for  information  and  that  the  scheme 
was  so  impractical  that  Mr.  Loftus  could  not  work 
it  out  properly  so  the  farmers  of  North  Dakota  would 
be  benefited  and  that,  for  political  effect,  he  was 
simply  making  wild  charges. 

Be  that  as  it  may.  the  net  result  of  the  committee's 
recommendation  was  that  the  terminal  elevator  pro- 
position was  not  feasible  and  it  was  to  overcome  that 
report  that  the  farmers  were  called  to  liismarck  by  the 
leaders. 

1'n  fortunately  f..r  North  Dakota,  the  speaker  of  the 
House  of  Representatives  was  a.  self  -opinion  a  ted,  eirntis- 
tical.  blow-hard  by  the  name  of  Treadwell  T  \vitchell. 
To  him,  the  will  of  the  people  as  twice  expressed  meant 
nothing.  He,  Twitrhell.  had  made  up  his  mind  that 
terminal  elevators  were  going  to  be  a  failure  and  the 


14  THE  NONPARTISAN  LEAGUE 

fact  that  fifty  thousand  people  thought  differ^itly  had 
no  efi'ect  on  his  mind.  Forgetting  all  about  the  man- 
date ••;»£  the  people,  Twitchell  worked  against  their  ex- 
pressed wishes. 

Later  Loftus  re-gained  any  prestige  he  might  have 
lost  during  the  roll  call  by  debating  Twitchell  before 
three  thousand  people  at  Aneta,  the  debate  being  ar- 
ranged by  Mr.  J.  G.  Gunderson,  where  he  unmercifully 
and  decisively  defated  Twitchell  in  the  debate.  What- 
ever little  doubt,  that  may  have  been  in  the  minds  of 
the  farmers  of  North  Dakota  before  that  debate,  van- 
ished and  they  wanted  terminal  elevators  a  hundred 
times  more  than  they  ever  did  before. 

But  to  go  back  to  the  roll  call.  The  night  before 
the  bill  was  to  be  voted  on,  after  the  stormy  afternoon 
meeting  in  the  House  of  Representatives,  Loftus  gave 
a  speech  in  the  Commercial  Club  at  Bismarck.  During 
the  course  of  that  speech  he  called  the  roll  of  the 
legislators  aiid  stated  how  his  investigation  lead  him 
to  believe  each  man  would  vote  on  the  terminal 
elevator  measure.  To  some  of  the  legislators  he  re- 
iVrred  in  contemptuous  tones — others  he  attacked  for 
their  personal  habits.  There  was  no  question  but  that 
the  result  of  his  speech  was  to  arouse  the  ire  of  the 
legislators,  and  some  afterwards  voted  against  the  bill 
who,  if  Loftus  had  not  made  that  speech,  would  un- 
doubtedly  have  voted  for  it.  The  final  result  was  that 
the  legislature  turned  down  the  bill  by  a  vote  of  64  to 
40. 

l.'p  TO  tli is  time  few  of  the  genuine,  hard  working 
farmers  and  tillers  of  the  soil  in  North  Dakota  had 
heard  of  A.  C.  Townley  being  mixed  up  with  the  term- 
inal elevator  and  equity  movement.  During  all  the 
years  that  the  other  Equity  men  and  myself  worked  to 
establish  the  Equity  Co-operative  Exchange  in  St.  Paul 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      15 

A.  C.  Townley  and  A.  E.  Bowen  were  never  assisting. 
Although  I  was  intimate  with,  and  in  business  with 
:e  of  the  leading  Equity  men,  the  name  of  Townley 
never  crossed  their  lips.  He  was  unknown  and  at  the 
very  time  when  the  Equity  fight  was  at  its  worst, 
Townley 's  occupation  was  that  of  state  organizer  for 
the  Socialist  party  in  North  Dakota.  He  was  a  candi- 
date on  the  Socialist  ticket  from  the  Thirty-Ninth  dist- 
rict for  election  to  the  very  legislature  which  turned 
down  the  terminal  elevator  measure.  His  running 
mate  was  A.  E.  Bowen,  who  had*  run  for  Governor  two 
years  before  on  the  Socialist  ticket.  Although  both 
were  be.aten  by  the  most  overwhelming  vote,  both  were 
at  Bismarck,  having  come  in  to  watch  things  and  see 
if  they  could  grab  an  opportunity  to  benefit  themselv- 
es. 

Previously  to  this  Townley,  Bowen  and  the  other 
Socialists  had  had  a  meeting  in  which  they  came  to  the 
conclusion  that  the  Socialists  could  not  get  anywhere 
in  North  Dakota  under  the  name  of  Socialists,  and  de- 
cided to  organize  the  Farmers  Nonpartisaii  Political 
Organization.So  they  were  at  Bismarck  to  ''size  things 
up." 

No  sooner  had  the  legislature  defeated  the  terminal 
elevator  proposition  than  these  men  got  together  and 
planned  to  organize  the  fanners  of  North  Dakota  into 
their  org.mi/ation. 

..iiest.iona!>ly.  before  this  the  Socialists  had  had 
lon.uvinir  eyes  on  Xorlli  Dakota,  tin-  State  thai  had 
twice  gone  to  LaFollettc  for  president  even  Delis  had 
won  out  in  sonic  places  hut  it  is  eviden;  ;-|h  Da- 

kota never  would  have  been  selected  for  ihis  experi- 
ment in  Socialism,  if  the  politicians  at  UisnmivU  had 
not  refused  to  obey  the  will  of  the  voters  twice  ex- 
pressed in  favor  of  terminal  elevators.  Thus  the  Stale 
was  betrayed,  not  by  Townley,  but.  hy  Treadwel!  Twit- 


16  THE  NONPARTISAN  LEAGUE 

cheli  and  his  cohorts;  by  a  political  bunch,  who, 
although  the  people's  vote  only  a  few  weeks  before 
was  f  1,507  to  18,483  in  favor  of  the  terminal  elevators, 
said  'the  people  of  North  Dakota  be  damned/'  and 
to  ii! -3  four  hundred  farmers  with  Loftus — "Go  home 
and  *  lop  your  hogs. ' ' 

Tij -y— Twitchell,  Linde,  and  the  rest,  TOGETHER 
WIT2I  CORPORATE  INTERESTS  TAKING  EXTOR- 
TIONATE PROFITS  AND  EXCESSIVE  INTEREST 
RATES  THAT  IS,  ALL  THEY  COULD  GET,  AND 
GIVING  THE  PEOPLE  AS  LITTLE  AS  POSSIBLE 
IN  ETURN— caused  the  Farmers  to  Revolt. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       17 
CHAPTER  II 

HOW  THE  FARMERS  WERE  ROBBED 

Nothing1  amazed  me  more  when  I  was  in  the  Equity 
fight,  than  the  ignorance  of  a  great  many  city  people 
of  the  marketing  troubles  of  the  farmers.  This  is  all 
the  more  strange  because  a  large  percentage  ot*  city 
people  own  farm  land  which  they  have  rented.  One 
would  believe  that  they  would  be  thoroughly  familiar 
with  the  State  and  Federal  laws  on  grading,  that  they 
would  know  whether  the  dockage  was  taken  in  pounds 
or  percentage,  and  they  would  be  familiar  with  the 
doiugs  of  the  close  corporation  known  as  the  Minne- 
apolis Chamber  of  Commerce,  and  that  they  would  be 
thoroughly  versed  on  the  fight  put  up  by  George  S.. 
Loftus  and  his  associates  for  the  farmers  of  the  Xorth- 


How  many  city  people  realize,  for  instance,  how  the 
price  for  <jrain  in  North  Dakota  is  fixed  —  not  by  Liver- 
po;  i  and  not  by  the  wheat  crop  in  the  Argentine  Re- 
pi,  lie.  these  plaees  may  effect  it  indirectly  —  but  the 
wh'-at  price  is  fixed  in  North  Dakota  directly  by  the 
:\I  :riieapolis  Chamber  of  Commerce,  through  a  little 
bu-  •••tin  sent  out  each  day  from  Minneapolis,  which 
is  died  The  (Jrain  liulletin  and  is  edited  by  a  Mr.  Du- 
rant. 

i  that  little  grain  bulletin  mines  out  and  says  to  the 

ek  uitor  at  Ileach.  Mott.  Linton.  Minot,  Bottineau,  Lis- 

bo?    or  (Jrand   Forks,  that  the  elevator  there  shall  pay 

$1.10  for  wheat.  THAT  IS  THE  AMOl'N'T  THK  KLE- 

VATOR    l»A  VS.  regardless  of    whether     Liverpool  has 

fit:..   million  bushels  of  wheat  and  Argentine  five  build- 

in  ill  ion  bushels  of  wheat.  In  other  words,  the  farmer 

is    .  p  airainst  a  controlled  market.  By  means  of  that 

u  bulletin  sent  out  every  day.  backed  up  by  the 


18  TliK  NONPARTISAN  LEAGUE 

influential   members  of  the  Chamber  of  Commerce,  the 
farmers  of  North  Dakota  have  been  robbed  of  millions 
of  dollars.     THEY  ARE  JJKINU  KOHBED  TODAY- 
you  and   1.  every  one  of  us  in  the  business  of  raifi 
wheat. 

As  Attorney  General,  1  brought  an  action,  suing*  the 
combination     using     this     Grain     Bulletin     for     ten 
million  dollars,  claiming  that  much  loss  to  the  farmer? 
in  one  year.      The  Judge  threw  the  case  out  of  court, 
holding  that,  as  Attorney  General,  I  could  not  bring 
the  action  for  two  reasons,  first  that  the  Federal  Gov- 
ernment, under  the  Food'  Control  Act,  had  control 
the  grain,  and  the  other,  that  I  had  no  right  TO  SUE 
FOE  THE  FARMERS  AS  INDIVIDUALS. 
Everyone  familiar  with  grain  knows  how  time  and  ti 
again,  when  the  farmer  hauled  good  wheat  into  to- 
he  has  been  given- the  grade  of  "rejected".     My  fam- 
ily has  raised  wheat  for  forty  years— we  thorouu 
understand  the  business  from  the  farmer's  end  of  r. 

When  you  ship  your  wheat  down  to  some 
sion  house  in  Minneapolis,  say  Jones  and  Company, 
commission  firm  takes  samples     of  it,     and  th. 
morning  has  them  displayed  in  the  wheat  pit.     When 
the  gong  sounds  for  the  beginning  of  the  trading  in 
the  Chambers,  some  man,  representing  say  Olson  and 
Company,  who  has  seen  the  grain  you  shipped  to  Junes 
and  Company,  buys  it  on  sample  at  say  ten  cents  be! 
market,  two  cents  are  now  assessed  against  the  wi 
for  sale.     The  man  who  represented  Jones  and  Com- 
pany is  quite  willing  to  sell   the  wheat  to  Olson 
Company  because  Olson,  and  Company  is  a  subsidiary 
concern  ml*  .lones  and  Company.     In  other  words,  J< 
and 'Company  took  the  Avlieat  and  sold  the  wheat  to 
themselves,  charging  you  two  cents  commissio: 
and  Company  now  sell  it  at  an  advance  of  three  cents 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      19 

to  Johnson  and  Company,  and  Johnson  and  Company 
sells  it  at  an  advance  of  three  cents  to  Peterson  and 
Company.  And,  if  you  investigate  the  matter,  you 
will  find  that  all  of  these  concerns  are  owned  by  the 
original  Jones  and  Company  and  that  each  of  these 
sales  in  ve  been  made  by  Jones  and  Company  to  them- 
selves- 

Somf  folks  may  think  that  I  am  unfair  to  the  Cham- 
ber ol  Commerce, 'and  I  will  therefore  refer  any  doubt- 
ers t(  rhe  proceedings  before  the  Committees  on  Agri- 
culture of  the  House  of  Representatives,  Sixty-Third 
Congress,  the  same  being  a  hearing  on  House  Bill  No. 
14,49;  i^roviding  for  the  uniform  grading  of  wheat, 
and  q  ting  testimony  of  F.  B.  Wells,  a  grain  operator 
of  vrft'~  repute  on  the  Minneapolis  market. 

"Q  -tion.— You  are  the  vice-president  of  the  F.  H. 
Peav<T  Company? 

An-    -T. — Yes,   Sir. 

Q.—  That  is  a  line  elevator  company? 

A.—  "hey  are  not  engaged  in  tlie  grain  business  in 

;  nyv       .  shape  or   form. 

Q— Whal  is  it? 

A."  :   is  a  holding  company. 

Q.— Holding  what  .' 

A        lolding  stocks   of  various   grain*  companies  in 

t.';nu...     . 

Q.—  What  companies  do  they  hold  stock  in? 
A.~ A  controlling  interest  in     the  Globe     Elevator 
y  of  Duliith,  all  the  stock  of  the  Duiuth  Ele- 
vator '.  ompany  and  hold  95  per  cent  of  the  Monarch 
Elevator  Company. 
Q.— What  is  that? 

A..— Country  line  on  the  Northern  Pacific  and  Mil- 
The  Duiuth  is  a  country  line;  the  houses  are 


20  THK  NONPAUTIKAN  IjBAGUl 

principally   on  the   Great  Northern   and    the   Monarch 
•  MI  the  Northern  Pacific. 

Q. — Any  other  line  elevator  companies? 

A.— -Not  in  that  territory.  They  have  a  few  «'h-vat- 
ors  in  Nebraska.  Theii  there  is  the  Belt  Line  Elevator 
Company,  a  terminal  located  in  Superior,  and  the  Globe 
Elevator  operates  terminals  in  West  Superior,  and  the 
Peavey  Duluth  Terminal  Elevator  Company  operating 
in  Duluth. 

Q.— Have  you  any  terminals  in  Minneapolis? 

A." The  Monarch  Elevator  has  a  terminaj  ;  the  li<> 
public  Elevator. 

Q.— How  many  terminal  elevators  have  you  in  Du- 
luth ? 

A.—  Three.  Not  in  Duluth,  but  at  the  head  of  the 
lakes,  two  in  Wisconsin  and  one  in  Minnesota. 

Q. — How  many  country  elevators  are  owned  or  con- 
trolled by  these  different  companies,  in  the  aggregate? 

A; — Do  I  understand  you  mean  Nebraska  also? 

.—All  of  them. 

A. — In  Minnesota  we  have  64  elevators  owned  by  the 
Monarch  and  Duluth  Elevator  Compaies. 

Q. — How  many  in  North  Dakota  ? 

A.  About  110 — no,  I  would  say  about  104,  about  6 
in  South  Dakota. 

Q. — Nebraska  / 

A— Fifty-five.  1  think. 

Q. — Any   in    Iowa  '.' 

A. — Yes,   one. 

Q.    In' the  aggregate,  about   how  many  country 
vators  have  you  ? 

A.— About    I'lT)   or  2:>0." 

Likewise  the  hearing  on  House  Bill  14.493.  Sixty- 
Third  Congress,  testimony  page  f>94,  showed  that  this 
same  company  had  many  elevators  in  Canada,  and  the 
leases  and  intertwinings  between  its  Amerk-an  >ub- 


ITS  BTRTH,  ACTIVITIKS  AND  LEADERS       21 

sidiary  companies  and  those  in  Canada  were  so  intri- 
cate that  even  Mr.  Wells  could  hardly  explain  them. 

If  some  of  my  readers  are  in  doubt  about  the  con- 
nection of  these  various  irrain  companies,  read  the  test- 
imony of  <i.  F.  Ewe,  connected  with  the  great  Minnea- 
polis grain  house  called  the  Van  Dusen — Harrington 
Company. 

"Question — The  capital  stock  of  the  other  compan- 
ies is  owned  by  the  Van  Dusen — Harrington  Company  J 

" Answer — Yes,  Sir. 

"Q. — Then  the  National  Elevator  Company,  the  Atla* 
Elevator  Company.  Van  Dusen  £  Company,  the  Star 
Elevator  Company,  the  Pioneer  Steel  Elevator  Com- 
pany, and  the  Crescent  Elevator  Company  are  sub- 
sidiary companies  of  the  Van  Dusen? 

"A— Yes,  sir. 

Later  the  witness  added  to  this  list  the  name  of  the 
Interstate  Elevator  Company  as  similarly  owned,  and 
testified  that  the  thus  owned  National  Elevator  owned 
in  turn  75  or  80  country  elevators,  in  various  parts  of 
the  Northwest;  the  Atlas  Company  owned  75  or  80,  Van 
Dusen  Company  owned  50  or  60.  He  admitted  owner- 
ship of  more  than  200  of  these  line  elevators. 

The  North  Dakota  Hankers  Association  itself  be- 
came dissatisfied  with  the  marketing  conditions  and  in 
3906,  appointed  a  committee .  of  five  to  investigate  the 
marketing  situation.  Among  other  places  to  which  the 
committee  went  was  Duluth.  There  they  discovered 
one  elevator  that  in  three  months  made  this  record: 
tirade  oC  AVheat  Received  Bu.  Shipped  \-\\\. 

No.  .1   Northern  99,711.40  196.1'>S.:'!n 

No.    2    141,455.10  4b7.7(>4.()U 

No.    :{    272,047.20  213,549.30 

No.  4 201,267.20  Norn 

No.    Orade    116,021.10  Nou< 


THE  NONPAKTISAN  LEAGUE 
Reie-ed   ,  59,742.30  None 


Total  890,245.10  877,512.00 

On  hand,   estimated   12,733.10 


890,245.10 

j*  as  discovered  that  the  value  of  the  wheat  when 
it  was  received  by  the  elevator  was  $875,405.66,  and 
it's  Tiilue  when  sold  was  $959,126.35,  leaving  a  profit 
of  $83,720.69  in  three  months. 

li    addition  to  this,  there  was  the  screenings  to  be 

ited  for,  and  the  committee  reported  as  follows: 

e  screenings  actually  taken  out  of  the  grain  (in 

this     ie  instance)  averaged  three-fourths  of  a  pound  to 

.shel.     From  our  knowledge  of  the  dockage  taken 

<tt    •    .-iitry  elevators  and  also  that  fixed  by  inspectors 

at  urminal  points  during  the  period  named,  we  believe 

this     ockagc  of  three-quarters     of  a  pound     actually 

take.-1,  from  the  shipper  or  farmer.     These  screenings 

sold  :V»r  about  eight  dollars  a  ton.     After  the  dockage 

of  ti  : '-e-qiiarters  of  a  pound  per  bushel  Mas  taken  out, 

the  _:;mi  was  shipped  from  the  elevator  as  clean  grain 

wiri      it  any  dockage. M 

record  in  another  vear  was  : 


of  Wheat 

Received  I>u. 

Shipped   l»u 

NTo.    1    Hani 

599,602 

648,607 

No.  1  Northern 

15,187,012 

19,886,l:-J7 

No.     U 

19,693,454 

15,17 

Xo.  3 

7,035,1:::; 

1,971,355 

Rejected 

892,241 

94,626 

X.».    <  ii-ade 

2,561,505 

468,922 

And  another  year. 

No.  1  Hard 

90,543 

199,528 

No.   1  Northern 

12,401,897 

18,217,789 

No.  2 

10,295,172 

6,723,732 

No.   3 

2,616,065 

283,299 

ITS  BIRTH,  ACTIVITIES  AND  LEADERS      23 

Rejected  .  ±:'>:>0..:j02  '  314,139 

No  Grade  L'.:>S<5,S43  kj:>H.!M:J 

These  film's  need  no  explanation.     Anyone  eai 
for  himself  that  wheat  of  a  low  grade  was  put.  into 
wheat  of  the  best  grade,  the  elevators  getting  the  pro- 
fit and  the  farmers  getting  nothing. 

These  are  only  a  few  of  the  many  evils  in  marketing 
of  which  the  farmers  of  North  Dakota  complained 
Loftus  had  by  his  tight  eliminated  the  switching 
charges. — He  had  organized  thjs  Equity  Co-operative 
Exchange,  but  in  all  ihis  fight  for  better  marketing 
conditions,  the  farmers  had  to  meet  the  stern,  unrelent- 
ing bitter  opposition  of  a  few  politicians. 

The  press  did  not  give  the  publicity  to  the  progres- 
sive element  headed  by  Bnrdick  that  it  should  have 
given — Burdick,  the  farmer,  who  himself  had  been 
fleeced  of  nearly  three  thousand  dollars  in  one  cattle 
shipment  to  South  St.  Paul,  who  stood  almost  squarely 
for  the  original  farmers'  program — Usher  L.  Burdick 
of  Williston,  whom  the  Socialist  leaders  of  the  Non- 
partisan  league  for  a  long  time  considered  endorsing 
in  place  of  Frazier — but  did  not  because  they  came  to 
the  conclusion  that  they  could  not  handle  him— that  he 
would  jump  the  fence  when  it  came  to  putting  over 
their  Socialism.  Burdick  they  were  afraid  wouldn't 
obey  orders  and  from  what  1  know  of  Burdick.  .1  be- 
lieve that  IF  US1IKR  L.  1H11DICK  HAD  BEEN  NOM- 
INATED AX!)  ELK(.TEI)  INSTEAD  OF  GOVEII.VOR 
FRAZIER,  today  there  would  be  no  split  among  the 
men  really  in  favor  of  carrying  out  the  original  farm- 
ers program.  TIIK  SOCIALISTS  WOULD  NOT 
BE  IN  CONTROL  OF  TIIK  ORGANIZATION.  BUR- 
DICK  WOULD  HAVE  DOXK  WHAT  FKA/1KK  DID- 
N'T HAVE  TIIK  NKHVE  TO  DO.  HE  WOULD 
HAVE  KICKED  THE  SOCIALIST  LEADERS,  WITH 


24  THE  NONPARTISAN  LEAGUE 

DEBS,  KATE  RICHARDS  O'HARE  AND  THE  REST 
OF  THEIR  ILK,  OUT  OF  HIS  OFFICE,  DOWN  THE 
FRONT  STAIRS  OF  THE  CAPITOL  BUILDING. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      25 
CHAPTER  III 

ARE  THE  LEADERS  SOCIALISTS? 

One  of  the  favorite  methods  of  misrepresenting 
honest  men  and  -women  who  are  opposed  to  the  cor- 
rupt machinations  of  these  three  men,  is  for  either 
Townley  or  Lenike(  or  one  of  the  many  men  in  their 
employ,)  to  get  up  and  say  to  an  audience  of  farmers, 
"They  are  calling  you  farmers  socialists,  I.  W.  W's, 
free  lovers  and  J>olsheviks,  they  say  you  are  stirring 
up  class  hatred  and  a. re  unpatriotic" — a  typical  speech 
of  this  sort  was  jrivon  lately  by  Howard  Wood.  "They 
say  that  they  are  in  favor  of  an  elevator  and  mill  that 
costs  two  million  dollars,  we  are  in  favor  of  a  program 
that  will  entail  the  spending  of  five  million  dollars,  I 
would  like  to  have  them  tell  me  just  where  socialism 
commences.  "Whether  when  they  spend  two  mil- 
lion dollars  and  five  cents,  or  when  they  spend  two 
million  and  one  hundred  dollars/7  And  the  crowd 
went  wild,  thoy  Hieered  as  they  had  cheered  no  other 
part  of  the  speech. 

Although  he  is  of  weak  intellect,  yet  Howard  Wood 
knew  better.  Deliberately  lying  to  his  audience,  he 
knew  that  1he  Minot  platform  distinctly  stated  that 
two  million  dollars  would  be  spent  only  for  CON- 
STRUCTION purposes.  He  knew  any  amount  of 
money  that  might  be  necessary  would  be  used  to  try 
out  the  mill  and  elevator  proposition  fairly.  If  it  took 
three  million  dollars,  to  buy  wheat  and  manufacture 
flour  and  send  the  same  to  other  states  and  other  coun- 
tries, thyt  that  amount  would  be  used.  This  is  a  sam- 
ple of  their  arguments. 

.When  an  .honest   fcjr'jper  attacks  fhe  pardon  of 


L'H  T 1 1 1«:  \(  >  X 1 '  ART I SA  N"  LEAGUE 

Richards  ()'  Hare  by  President  Wilson,  upon  written  re- 
eoiMnicndation  of  (iovernor  Frazier,  the  Nonpartisan 
papers  come  out  saying,  "The  Farmers  movement  is 
attacked. 'J 

When  an  Jionest  man  gets  up  and  offers  an  honest 
criticism  of  the  Bank  of  North  Dakota,  and  demands 
tli at.  it  l>e  taken  out  of  politics  and  put  into  the  hands 
of  the  fanners  themselves,  the  league  papers  in  every 
county  shout  in  unison,  "The  farmers  program  is  be- 
ing attacked." 

When  an  honest  citizen  tells  from  a  public  platform 
lio~\v  Town  ley  did  not  dare  to  get  on  the  witness  stand 
;it  .Jackson.  Minnesota,  the  same  papers  controlled  by 
Townley  and  Lemke  chant,  "The  farmers  of  North 
Dakota  arc  being  attacked." 

When  honest  officials  elected  by  the  farmers  them- 
selves arrest  crooks  and  a  jury  composed  of  a  major- 
ity of  farmers,  convict  him  the  papers  controlled  by 
Townley  and  Lemke  yell,  "Convicted  by  Big  Business 
because  the  defendant  is  a  friend  of  the  farmers  pro- 


It  is  for  tins  reason  that  I  welcome  the  anti-liars 
license  law.  THEY  MUST  EITHER  PUT  ME  IN 
TI1K  PKMTKNTIAUY  OR  ADMIT  THE  TRUTH  OF 
WHAT  I  AM  BAYING. 

What  is  the  connection  between  Townley  and  his 
outfit  of  the  Socialist  party  of  the  United  States? 
Here  are  the  indictments  by  counts  and  I  challenge  the 
refutation  of  a  single  one : 

1  A.  0.  Townley  for  years  has  been  a  socialist.  He 
ran  for  -the  legislature  of  North  Dakota  on  the  social- 
ist ticket  in  1914,  in  the  thirty-ninth  district,  and  was 
defeated  the  vote  being  as  follows: 

hi  Billings  Comity  Townley  received  230  votes  out 
of  900. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       27 

In  Golden  Valley  County  Townley  got  342  vote  out 

of  1000. 
In  Bowman  County  Townley  got  244  votes  out  of 

821. 

2  A.  C.  Townley  under  oath  swore  that  he   -is  a 
Socialist. 

3  F.  B.  "Wood,  one  of  the  other  men  who  is  in  con- 
trol of  the  organization  is  also    a    Socialist,    running 
for  County  Auditor  on  the  Socialist  ticket  in  Ward 
County — and  being  defeated. 

4  One  of  the  men  in  charge  of    the    organization, 
working  for  the  League  when  it  was  organized,  and 
when  I  was  endorsed  for  Attorney  General  was  A.  E. 
Bowen  who  ran  for  the  legislature  of  North  Dakota 
in  1914  for  the  thirty-ninth  district  comprising  at  that 
time  Bowman,  Golden  Valley  and  Bilings  Counties.  The 
vote  being  as  follows :     Billings  County  247  out  of  900. 
Golden  Valley  County  392  out  of  1000,  and  Bowman 
county  240  out  of  821. 

5  A.  E.  Bowen  ran  for  Governor  of  North  Dakota 
on  the  Socialist  ticket  in  1912  and  received  the  follow- 
ing vote :     6,835  out  of  78,190. 

6  A.  E.  Bowen  is  now  working  for  Townley  and 
Lemke  and  Wood  in  Minneasota.     Up  to  a  short  time 
ago  his  headquarters  were  near  Detroit.    He  was  in 
charge  of  the  organization  work  in  that  congressional 
district  which  Halvor  Stennerson  represents  in  Con- 
gress. 

7  Arthus  Le  Seuer  chosen  by  these  three  men  to  be 
the  executive  secretary  for  what  they  call  the  Non- 
partisan  League,  has  been  a  Socialist  for  years.    He 
ran  for  Attorney  General  on  the  Socialist  ticket  in  1904 
and  1910. 

8  He  ran  for  President  of  the  United .  States  on  the 
Socialist  ticket  in  March  1916,  the  very  time  the  league 


28  THK  NONPABTISAN  LEAGUE 

was  being  organized  and  received  1156  votes  in  North. 
Dakota. 

0  At  the  time  the  league  was  organized  Charles 
Kdward  liussell.  Socialist  candidate  for  Mayor  ojt'  New 
York  City,  was  out  here  and  Town  ley  testified  under 
oath  on  page  17i>  of  his  Bankruptcy  proceedings  that 
Uussell  "was  employed  to  start  the  Xonpartisau 
League." 

10.  Eugene  Debs  with  whom  Arthur  LeSuer  was  at 
tli at  time  in  partnership  at  Girard  College  in  Kansas 
was  out  here  secretly    addressing     the  socialists     tell- 
ing them  to  join  the  organization  because  it  was  the 
socialist  party  under  another  name.     Debs  lias  repeat- 
edly  run   for   president    of   the   United   States    oil   the 
Socialist  ticket. 

11.  'Walter  Thomas  Mills  who  at  that  time,  in  1916, 
was  running  for  United  States  Senator  from  California 
on  the  Socialist  ticket,  against  Hiram  Johnson  was  out 
here  on  the  League  pay  roll  speaking,  and  I  understand 
he  is  still  spreading  Socialism   in  other  states. 

12.  The  men  endorsed  for  office  were  men  who  eith- 
er were  mixed  up  financially  with    Leinke  so  that  he 
felt  he  could  control  them,  or  wen-  radicals  or  social- 
its.  At  the  first  election  just  enough  conservatives  were 
put  on  to  enable  them  to  "get -by.  For  instance  Lynn 
•T.  Fra/ier  for  governor,  was  chosen  by  Townley  and 
Leirike,  WHY?     Was  he  an  Equity  man?  Xo.     Had  he 
any  experience  in  business  affairs.     Xo.     The  farmers 
elevator   company    and    the    farmers   store    of   both    of 
which  he  was  director  had  conducted  their  business  so 
poorly  that   there  was     nothing  to     merit     recognition 
there      and      although      his      neighbors      had-     become 
fairly     wealthy     under     the     same     crop     conditions, 
yet    Fra/ier  had    not.     Then    why   did   they  pick:  himf 
Because  he  was  in  b'usmes-s  with  Lemke.     He.  has  been 
an  associate  in  tb«*  Land  Finance  (.'feiupraar  which  con- 


ITS   mUTH.  ACTIVITIES  AND   LKADKKS       29 

trols  over  halt'  a  million  acres  in  Mexico.  Kra/icr  was 
carefully  chosen,  even  Poor  -John  Worst,  Townlcy  said 
was  called  up  In  headquarters  one  time  and  sized  up 
for  (Jovernor.  Town  ley  at  tliat  time  came  to  the  con- 
clusion that  Worst  was  hungry  for  the  job  and  too 
much  of  a  politician,  and 'Worst  was  side-tracked. 
Worst  who  published  the  story  that  the  fanners  were 
loosing-  fifty  million  dollars  annually.  A  tale  which 
many  farmers  still  believe,  but  which  is 
BO  raw  THAT  EYEX  E.  F.  LADD  HAS  WRITTEN  A 
LETTER  REPUDIATING  KKSPOXSTBIUTY  FOR 
ANY  CONNIPTION  WITH  THIS  STATEMENT. 

lo  Justice.  J.  E.  Robinson  of  the  Supreme  Court 
was  selected  because  he  was  a  business  partner  of 
Lemke  and  at  that  time  acting  Secretary  of  the  Land 
Finance  Company  of  Mexico.  He  is  no  -longer  secre- 
tary, but  still  a  stockholder.  Only  a  few  weeks  ago 
Robinson's  son  was  down  in  Nogales,  Ari/ona,  Lemke 
iret.ting  him  down  there  to  go  into  Mexico. 

34     Judge    Richard    (Jrace    of    Mohall    is    aSocialisi. 
While  the  Socialist   local  was  running  in  Minot  he  vis 
ited    it    and    was    called    ''Comrade".     The    Socialist 
paper,  the  "Iconoclast"  referred  to  him  with  a  frater- 
nal  feeling. 

15  Nelson  Mason,  the  Governor's  secretary.,  is  a 
Socialist. 

1(1  O.  K.  Lofthus,  appointed  by  the  governor  a.s 
State  Hank  Kxaminer  of  North  Dakota,  a.  protector  of 
first  class  crooks  as  proven  in  the  Scandinavian  'Bank 
case,  when  under  oath  he  admitted  that  he  returned  the 
evidence  which  Justices  Bronson.  Robinson  and  Gran-, 
made  me  as  attorney  general  hand  to  hi»o?  to  the  very 
crooks  whom  we  had  arrested  and  to  the  President  who 
was  convicted  by  the  jury.  He  ran  IV»r  Treasurer  of 
North  Dakota  OM  the  socialist  ticket,  in  191£. 

17      |{.  Corr  appointed   by  (.JuverMor  Kraxier  to  he  a 


30  THE  NONPARTISAN  LEAGUE 

member  of  the  State  Bar  Board  examiners  ran  .t'or  at- 
torney general  of  the  State  of  North  Dakota  on  the 
socialist  ticket  in  1916. 

18  Seaman  Smith  appointed  by  Governor  Frazier's 
Board  of  Administration  as  state  transportation  offi- 
cer, is  a  Socialist.     In  1916  he  was  elected  sheriff  of 
Golden  Valley  on  the  Socialist  ticket. 

19  D.  C.  Coates  was  imported  from  Spokane,  Wash- 
ington, by  Townley,  to  edit  the  North  Dakota  Leader, 
and  assist  in  various  ways.     Coates  ran  for  city  com- 
missioner of  Spo'kane  on  the  Socialist  ticket  and  in 
1905  helped  Bill  Haywood  organize  the  I.  W.  W.  Late- 
ly he  has  been  managing  the  campaign  for  Duncan 
for  mayor  of  Seattle  Duncan  running  with  the  rad- 
ical support,  having  been  one  of  the  leaders  in  the 
strike  at  Seattle.     The  strike  was  so  important  that 
Max  Eastman,  the  leading  International  Socialist  in 
the  United  States,  went  out  to  Seattle  to  "Help",  after 
first  stopping  off  at  Bismarck. 

20  Howard  Wood,  lieutenant     governor  of    North 
Dakota,  is  a  Socialist. 

21  Alex  Strom,  who  up  to  a  few  weeks  ago  was 
manager  of  the  League  in  the  state  is  a  Socialist.     He 
was  elected  sheriff  of  Williams  County  on  the  Social- 
ist ticket.    In  1914  he  was  a  candidate  on  the  Social- 
ist ticket  for  the  legislature,  from  Williams   county, 
getting  300  votes. 

22  Howard  Elliot,  who  was  state  manager  of  the 
League  before  Strom  is  a  Socialist.    In  1914  he  was  a 
candidate  for  the  Legislature  on  the  Socialist  ticket 
from  Bottineau  County  getting  272  votes  out  of  ap- 
proximaely  2500. 

23  Beecher  Moore,  who  was  state  manager  of  the 
League  shortly  before  Elliot,  is  a  former  Socialist  lect- 
urer. 

24  Some  of -the  various  speakers  who  they  send  out 


ITS  JJllJTH.  ACTIYITIKS  AND  LEADERS       31 

;>eak   are  secured   by  advert ising  in   the  Appeal   to 
Reason,  the  leading  Socialist  paper  of  the  country. 

Here  is  a  list  of  some  of  ilie  speakers  tkat  have  been 
speaking  for  ToAviiley,*  Lemke  and  Wood,  every  one 
of  tin1  ma  dyed-in-the-wdol  Socialist. 

L.  L.  Griffith  who  Avas  emplo3^ed  a  portion  of  the 
time  in  the  office  at  St.  Paul  and  part  of  the  time  down 
in  Oklahoma,  is  a  member  of  the  Socialist  party  of 
Xorth  Dakota.  In  1914  lie  ran  for  Congress  oil  the 

ialist  ticket  and  got  :],79S  votes  out  of  27/251. 
(Jenrge  (JritTitli   a  l)rother  of  L.  L.,  is  in  charge  of 
organi/ation  work  for  the  National  Nonpartisaii  Lea- 

and  is  a  member  of  the  Socialist  party. 
( ).  M.  Thomason.  who  hails  from  the  State  of  Wash- 
ington, first  editor  of  the  National  Nonpartisaii  Leader, 
was  one  time  editor  of  the  Iconoclast,  a  Socialist  paper. 
L.  L.  Randall,  party  socialist,  from  the  Pacific  coast, 
well  known  Socialist  orator  and  organizer. 

lv.  1>.  Mai-tin.  Socialist  lecturer,  has  had  charge  of 
organi/ation  work  in  Montana  and  Minnesota, 

Henry  Teige'n.  confidential  handy  man  at  headquart- 
and  who  part  of  the  lime  is  considered  to  be  the 
treasurer,   calls  himself  a   Socialist. 

.Joseph  Gilbert,  third  party  socialist,  lecturer  and 
leader  from  Pennsylvania.  He  is  a  lawyer  and  at  one 
time*  had  charge  of  the  organization  work  in  all  the 
states. 

*      Alfred    Knndsoii.   lecturer  and  organi/er.   Xorth  Da- 
kota,  a   party  socialist. 

•I.  C.  Duncan.  Socialist  mayor  of  'Butto,  Montana, 
and  Avas  manager  in  South  Dakota  in  1917. 

K.    L.   Cooper,    Nurlh   .Dakota,    party   socialist.     Very 

tive    in    the   or^ani/at ion    of   that   party   in    Western 

North  Dakota.      Was  in  Kansas  for  a  while  but  assisted 

in  the  work  in  Minnesota,  and  South  Dakota   also.     In 


32  THE  NONPARTISAN  LEAGUE 

.1914  candidate  for  the  legislature  from  Williams  County 
and  got  badly  beaten. 

0.  S.  Evans,  North  Dakota  socialist,  in  charge  of 
work  in  Nebraska,  for  a  while  and  then  transferred  to 
South  Dakota. 

J.  A.  Currifr,  party  socialist  lecturer  and  organizer 
formerly  employed  by  the  Socialist  party  in  Texas  and 
Florida,  was  iu  this  work  for  years  before  coming  to 
work  for  Townley  and  Lemke. 

Ernest  O.  Meitzen,  party  socialist,  prominent  in  the 
Socialist  party  in  Texas  for  years. 

0.  Meitzen,  father  of  E..  0.  Meitzen,  also  a  Texas 
party  socialist  and  forager  editor  of  the  "Rebel,"  a 
radical  socialist  publication,  barred  from  the  United 
States  mail  by  executive  order  of  the  federal  govern- 
ment, now  editor  of  the  German  edition  of  the  North 
Dakota  Leader.  Meitzen  boosted  hard  for  Arthur  Le 
Seuer  for  President  of  the  United  States  on  the  Social- 
ist party. 

Thomas  R.  Hickey,  one  of  the  best  known  Socialists 
of  the  south,  was  associated  with  the  Meitzens  in  the 
publication  of  the  "Rebel''. 

Wilson  Woodrow,  party  Socialist  prominent  in  the 
Socialist  party  in  Oklahoma,  published  a  weekly  paper 
called  " Woodrow 's  Magazine." 

Leon  Durocher,  who  ran  for  Congress  in  North  Da- 
kota on  the  Socialist  ticket  in  1914.  For  a  while  had 
charge  of  the  organization  work  in  South  Dakota.  He 
became  disgusted  with  Townley 's  autocratic  methods 
and  has  repeatedly  refused  to  work  for  Townley  and 
Lemke. 

J.  Arthur  Williams,  party  socialist  and  formerly  as- 
sistant editor  of  the  "Iconoclast",  Socialist  paper  pub 
lished  at  Minot.  He  was  one  of  the  first  orgranizers 
employed  by  the  League  in  North  Dakota  and  later 
was  sent  to  Montana.  In  1914  he  was  candidate  fc>r 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       33 

governor  on  the  Socialist  ticket  and  polled  6580  votes 
out  of  82,626.  At  the  time  the  League  was  l»-  ;)ig  or- 
ganized he  joined  Town  ley  at  so  much  per  month,  the 
result  being  that  there  was  an  immediate  drop  n  the 
socialist  vote. 

In  1912  the  Socialist  vote  in  North  Dakota  for  gover- 
nor was  6,834,  in  1914  the  socialist  vote  in  North  Da- 
kota for  governor  was  6019,  in  1916  the  socialist,  vote 
in  \orth  Dakota  for  Governor  was  2615,  and  then  the 
party  disappeared.  There  is  no  Socialist  party  in  ;\Tortli 
Dakota.  Just  now  Kate  Richards  O' Hare's  husband 
is  in  the  state  giving  speeches  and  getting  signatures 
to  a  petition  which  will  enable  Debs  to  run  on  he  Na- 
tional Socialist  ticket— BUT  THERE  IS  NO 
NOW  OF  A  STATE  TICKET. 


:;i  THE  NONPABTISAN  LEAGUE  j 

CHAPTER   IV 

FARMERS— AND  A  POLITICAL  MACHINE 

Four  years  ajro  the  state  officers  were  elected  U])on 
the  plea  that  the  people  watned  lower  taxes,  less  of 
politics  and  a  more  economical  administration.  As 
soon  as  Town  ley,  Lemke  and  Wood  got  control  of  the 
administration  ,  instead  of  lower  taxes,  they  doubled 
and  trebled  them.  Instead  of  economies,  extravagance 
abounded.  Jn  place  of  less  politics,  politics  have  in- 
creased to  a  decree  u-nd reamed  of. 

EVERY  TIME  YOU  PLACE  A  MAX  OX  THE 
STATE  PAY  ROLL  HE  BECOMES  A  BOOSTER  FOR 
THE  ADMINISTRATION".  It  is  the  plan  of  those  in 
power  to  scatter  these  men  judiciously  through  the, 
State  of  North  Dakota,  to  have  them  in  all  walks  of 
life,  to  have  them  directly  responsible  not  to  any  Sen- 
ate, not  to  any  association  that' might  be  interested  in 
the  business,  but  to  have  them  RESPONSIBLE  DIR- 
ECTLY TO  THE  (JOVE U NOR  AND  REMOVABLE 
AT  HIS  PLEAsrRE— THE  OOYERNOR.  OF  COCRSE 
IN  TCRN  BEING  HELD  TO  STRICT  ACCOUNT- 
ABILITY TO  TOWNLEY.  LEMKE  AND  WOOD. 

2<OUR"  Governor  is  the  way  Townley  describes  him 
when  speaking  to  the  "inner  circle/' 

Not  only  are  the  laws  so  drawn  that  they  can  <rive 
..ut  ALL  THE  JOBS  they  wish,  but  tney  can  PAY 
ANY  SALARY  THEY  CHOOSE.  ;,nd  there  is  the  even 
greater  political  evil  of  PROMISING  MEN  .JOBS  BE- 
FORE ELECTION  and  then  bein<r  ABLE  TO  FCLFILL 
THE  PROMISE.  Here  are  some  of  the  jobs  that  they 
can  u'ive. 

The  Bank  of  Xorth  Dakota  is  placed  under  the  In- 
dustrial Commission  consisting  of  the  governor,  attor- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       35 

ney  general  and  the  commissioner  of  agriculture  and 
labor.  THE  GOVERNOR  CAN  VETO  ANYTHING 
WHICPI  THE  COMMISSIONER  OP  AGRICULTURE 
AND  LABOR  AND  THE  ATTORNEY  GENERAL 
MAY  DO.  HE  IS  SUPREME.  WITHOUT  HIS  CON- 
SENT, THE  OTHER  MEN  ELECTED  CAN  DO 
NOTHING. 

(  .'oiiM-Mjuently  under  Chapter  147  of  the  Session  Laws 
of  1919,  creating  the  Bank  of  North  Dakota,  the  In- 
dustrial Commission  (which  is  the  governor)  has  tin* 
following  power.  It  can  appoint  a  manager  of 
the  Bank  of  North  Dakota  and  may  appoint 
AND  COMPENSATION  of  each. 

Contractors, 

Architects, 

Builders, 

Attorneys, 

Cashiers, 

Tellers, 

Clerks, 

Accountants, 

Agents, 

Servants, 

And  other  experts, 

AS  IN  THE  jrixniENT  OF  THE  COMMISSION 
(which  is  the  Gov.-rnor)  THE  INTERESTS  OF  THE 
STATE  MAY  RE^riKE,  and  shall  define  W  duties. 
desioiKilc  titles,  and  FIX  THE  COMPENSATION 
AND  BONDS  OF  SUCH  PERSONS  SO  ENGAGED. 
And  to  makf  it  even  stronger  and  to  make  the  manager 
understand  just  where  his  power  comes  from,  the  ad 
says,  "provided,  however  that  subject  to  the  control 
and  regulation  of  the  commission"  (which  is  the  tiov- 


;»><!  THK  XOXPAKTISAX  LKACTK 

ernori   "the  manager  of  the  bank,  shall   appoint  and 
employ  such  : 

Deputies, 
Tellers, 

Other  subordinates,  i 

And  such  contractors, 

Architects,  .  \ 

Builders, 
Attorneys, 
Cashiers, 

Tellers,  I 

Clerks,  ! 

Accountants, 
And   other  experts, 
A  gents, 
And  servants, 

As  he  shall  in  his  judgment  deem  are  required  by  the 
interests  of  the  hank.  All  "of  the  men  appointed  are 
REMOVABLE  AT  THE  PLEASURE  OF  THE  COM- 
MISSION, (which  is  the  Governor). 

The  law  then  goes  on  and  gives  the  Industrial  Com- 
mission  (which  is  the  governor)  the  sum  of  TWO 
MILLION*  DOLLARS  TO  START  THE  BANK  IN 
BUSINESS. 

The  Home  Builder's  Association  is  a  similiar  gem  of 
MORE  JOBS.  Section  4  of  Chapter  154  provides  that 
the  Industrial  Commission  (which  is  the  Governor) 
shall  obtain  SUCH  ASSISTANTS  AS  ITS  JUDG- 
MENT SHALL  BE  NECESSARY  for  the  establish- 
ment .maintenance  and  operation  of  the  association. 

To  that  end   it   shall   appoint   a     manager     and  may 
appoint   such      SUBORDINATES     AND     OFFICER^ 
AND  EMPLOYEES  AS  IT  MAY  DEEM  EXPEDIENT. 
It  shall  employ  such: 
Contractors, 
A  rchitects, 


ITS   UlRTH.   ACTIVITIES   AND   LKADKRS        37 

Builders, 

Attorneys, 

Clerks. 

And  other  experts, 

Agents, 

And  servanfs 

as  in  the  JUDGMENT  OF  THE  COMMISSION  THE 
INTERESTS  OF  THE  STATE  MAY  REQUIRE.  It 
shall  designate  the  title  and  FIX  THE  COMPENSA- 
TION and  bonds  of  all  such  persons  so  engaged.  Then 
there  is  the  clause  as  in  the  bank  act,  showing  that  the 
manager  is  subject  to  the  CONTROL  OF  THE  GOV- 
ERNOR. 

TIIKX  there  is  the  Commissioner  of  Immigration,  the 
commissioner  is  also  APPOINTED  BY  THE  GOVER- 
NOR. WITHHOUT  ANY  CONFIRMATION  BY  THE 
SENATE.  HE  SHALL  EMPLOY  AND  FIX  THE 
SALARIES  OF  ALL  ASSISTANTS  naeeMftry  for  the 
•purpose  of  carrying;  out  the  provisions  of  this  act,  and 
then  they  APPROPRIATED  FOR  HIM  TWO  HUND« 
JJKD  THOUSAND  DOLLARS. 

THEN    there    is    the    Industrial    Commission    itself, 
\vhirh  is  in  reality  the  Governor,  and  section  3  of  Chap- 
L")1.    !!>!!»   Session   La\vs.    provides.   "In  the   trans- 
action of  its  yen  end  business,  it    may  employ  a, 

SECRETARY, 

And    OTIIKR    SUBORDINATE   OFFICKRs 

CLERKS. 

AIM!    ACKNTS, 

DN  SCCFI  TKRAIS  AS  IT  MAY  DhFM  PROPER, 
API»OINTIN«J  AND  DISCHARGING  ALi.  PKRSONP 
$0  KNCACKD  WHHN  IN  ITS  DISCRKTICN  th*. 
public  ijiterest.s  ro(juire.  Tlie  commission  may  fe* 
iire  suitable  bonds  of  any  sucli  secivtary  or  other 


38  THE  NONPARTISAN  LEAGUE 

subordinate  officer  and  SHALL  FIX  THE  AMOUNT 
COMPENSATION  of  each. 

THEN  there  is  the  Workmen  ^Compensation  Board 
(which  is  the  governor).     Section  4  of  Chapter  162, 
1919  Session  Laws,  provides  that  it  shall  consist  of  the 
Commissioner  of  Agriculture  and  Labor,  and  two  com- 
missioners, TO  BE  APPOINTED  *BY  THE  GOVERNOR 
who  CAN  BE  REMOVED  BY  HIM,  thus  giving  him 
control,  and  this  bureau  SHALL  EMPLOY  SUtJH : 
ASSISTANTS 
AND  CLERICAL  HELP 

as  IT  MAY  DEEM  NECESSARY,  and  FIX  THE  COM- 
PENSATION of  all  persons  so  employed.  Provided 
that  all  such  clerical  help  and  assistants  shall  be  sub- 
ject to  existing  laws  regulating  the  selection  of  depart- 
ment clerks.  The  law  provides  also  for  the  SALARY 
AND  COMPENSATION  OF: 

Members  of  the  Bureau, 

Actuaries, 

Assistants,     • 

Inspectors, 

Accountants, 

Physicians, 

And  other  assistants 

and  all  other  expenses  of  the  Bureau. 
Then  there  is  the  Hail  Insurance  Law.    Section  30, 
Chapter  160,   1919   Session  Laws,  provides  that  the 
Commissioner  of  Insurance  shall  have  authority  to  em- 
ploy all  necessary  ASSISTANTS,     to     provide     and 
"furnish  all  necessary  supplies,  to  appoint  a 

Manager,  (SUBJECT  TO  THE  REMOVAL 
OF  THE  GOVERNOR) 

A  chief  inspector, 

And  other  deputy  inspectors, 

A  chief  clerk, 

And  as  many  adjusters 


ITS  mirni.  ACTIVITIKS  AXD  LKADERS      39 

And  assistants 

as  may  be  necessary  to  adjust  all  claims  for  losses 
from  hail,  and  the  Commissioner  of  Insurance  shall 
designate  the  duties  and  FIX  THE  COMPENSATION 
<)F  ALL  SH'II  EMPLOYEES  AND  MAY  REMOVE 
any  or  all  of  them  WITH  OR  WITHOUT  CAUSE. 

Then,  of  course,  there  are  the  taxes.  And,  as  Chiel 
Justice  John  Marshall  said,  the  power  to  tax  is  the 
power  to  destroy..  Chapter  213  of  the  1918  Special 
Session  Laws,  provides  that  the  Governor  with  the  ad- 
vice and  consent  of  the  Senate  shall  appoint  a  TAX 
Commissioner,  who  shall  serve  for  a  term  of  six  years, 
or  until  his  successor  is  appointed.  THE  GOVERNOR 
MAY  REMOVE  THE  TAX  COMMISSIONER  AT  ANY 
TIMK  ANT)  APPOINT  A  STcCtfSSOR,  and  Section  1 
of  Chapter  61)  of  the  Law  passed  by  the  Sixteenth 
Legislative  Assembly  provides  that,  the  State  Tax  Com- 
missioner may  appoint  in  eaeh  judicial  district  of  the 
state  a  tax  supervisor  in  each  district,  who  shall  serve 
i'our  years,  and  such  TAX  SUPERVISOR  MAY  BE 
IlEA-IOVKD  AY  mi'  OR  AV1THOIT  CATSE  BY  THE 
COMMISSIONER.  To  help  things  along  $62,387.38 
were  appropriated. 

Then  we  have  the  Motor  Vehicle  Department.  Chap- 
ter l-'.l  of  the  Session  Laws  of  HUT.  provides  that  the 
Highway  Commission  shall  consist  of  the  Governor,  as 
Chairman,  the  Commissioned  of  Agriculture  and  Labor 
the  Stale  Kngineer.  who  is  APPOINTED  BY  THE 
iiOYKKN'oK.  and  TAYO  other  members  are  also 
APPOINTED  P>Y  TIIK  l.iOYKllNOU.'  The  law  (Creat- 
ing the  commission  provides  that  the  state  engineer 
shall  be  the  Secretary.  Chapter  1S2  provides  that  the 
Commission  shall  appoint  a  registration  clerk,  and 
section  17  states  uith  TMK  APPROVAL  OF  THE 


40  THE  NONPARTISAN  LEAGUE 

COMMISSION,  (which  is  the  Governor)  the  Secretai 
shall  appoint  all 

Such  Deputy  Assistants 
or  Employees 

as  he  may  deem  necessary  for  the  purpose  of  this  act 
The  compensation  of  such  employees  to  be  fixed  by  th< 
Commission  on  recommendation  of  the  Secretary  of 
Board,  and  paid  out  of  the  state  highway  commissio] 
fund.     In  order  to  get  this  commission  going  nice! 
section  2  of  Chapter  11,  provides  that  a  sum  not  t 
exceed  $150,000.00  per  annum  shall  be  set  aside  to  de- 
fray thB  expenses  of  the  State  Highway  Commissio] 
The  total  amount   of  money  handled  by  the  mot< 
vehicle  department  this  year  was  $63(6,842.40. 

Then  there  are  the  schools — even  they  are  not  exem] 
from  this  political,  socialistic  machine.     Section  4 
the  Board  of  Administration  Act,  which  robbed  Mis 
Nielson,  the  Superintendent  of  Public  Instruction,  o$ 
the  power  to  prescribe  the  course  of  study  for  th« 
several  classes  in  the  public  schools  of  the  State,  prol 
vides  that  they  can  employ  certain 
Officers 
And  Assistants, 

Directors  of  vocational  training, 
School  inspectors, 
Business  managers, 
Accountants 

and  employees  as  may  be  necessary.  . 
This  Board  consists  of  five  members,  THREE 
whom  are  APPOINTED  BY  THE  GOVERNOR,  th< 
section  4  goes  on  and  says,  "the  Board  of  Admi 
tration  (which  is  the  Governor)  shall  be  the  judge 
the  qualifications  and  may  remove  any  such  employe 
when  in  its  judgment  (which  is  the  Governor)  the  pi 
lie  service  demands  it. 

Section  7  of  the  Board  of  Administration  Act  pi 


s  BIRTH,  ACTIVITIES  AND  LEADERS       41 

Tides  for  the  appointment  by  the  Board  of  Administra- 
tion (which  is  the  Governor)  to  have  charge  of  the 
supervision  of  the 

certification  of  teachers, 
standardization  of  schools, 
examination  for  eight  grade 
and  high  school  pupils, 
preparation  of  courses  of  study 
for  the  several  classes  of  public  schools 
and  rsiich  other  work  as  may  be  assigned  to  it  by  the 
board. 

A<  attorney  general,  I  was  not  subservient  to  them 
so  th'-yy  passed  another  law  giving  to  the  governor  the 
power  to  appoint  as  many  Assistant  Attorneys  Gen- 
eral as  they  may  have  promised  jobs  to — THE  SKY 
IS  THE  LIMIT. 

11  there  is  The  North  Dakota  Mill  and  Elevator 
As>m-iation,  which  is  given  by  the  Industrial  Commis- 
sion    which  is  the  Governor),  controlled  by  the  Town- 
ley  ii^d  Lemkc,  the  power  to  establish  a  system  of 
Warehouses. 

Elevators  and  Flour  Mills, 
Factories, 
Rants, 

Machinery  and  Equipments 
and  all  other  things  necessary. 
Incidental  or  convenient  in  the  manu- 
facturing and  marketing  of  all  kinds 
of  raw  or  finished  farm  products 
within  or  without  the  state  and  may 
dispose  of  them. 

It  may  buy,  manufacture,  store,  mortgage,  pledge, 
sell,  exchange  or  otherwise  acquire  or  dispose  of  all 
kinds  of  manufactured  and  raw  farm  food  products 


42     .  THK  NONPAKTISAX  LEAGUE 

and  by.-products  and  may  for  such  purposes  establish 
and  operate 

Exchanges, 

bureaus, 

Markets, 

and  agencies 

WITHIN  AND  WITHOUT  THE  STATE,  including 
FOREIGN  COUNTRIES,  on  such  terms  and  conditions 
and  under  such  rules  and  regulations  as  the  commis- 
sion (which  is  the  governor)  may  determine. 

The  section  goes  on  to  say  that  the  Industrial  Com- 
mission (which  is  the  governor)  shall  obtain  such, 
assistance  as  in  its  judgment  may  be  necessary.  It 
shall  appoint  a  manager  and  may  appoint  such  subord- 
inate officers  and  employees  as  it  may  judge  expedient 
It  shall  employ  such 

contractors, 

architects, 

builders, 

attorneys, 

clerks, 

accountants 

and  other  experts, 

agents 

and  servants 

as  in  the  judgment  of  the  Commission  the  interests  of 
the  State  may  require  and  SHALL  FIX  THEIR  COM- 
PENSATION. It  provides  however,  that  subject  to 
the  control  and  regulation  of  the  Commission,  the  Man- 
ager of  the  Association  shall  appoint  and  employ  such 

deputies  and  other  subordinates, 

contractors, 

architects, 

builders, 

attorneys. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       43 

clerks, 

accountants 

and  other  experts, 

agents 

and  servants 

and  Jhe  shall,  in  his  judgment  deem  are  required  by  the 
interests  of  the  Association. 

The  Industrial  Commission  (which  is  the  governor) 
MAY  REMOVE  AND  DISCHARGE  ANY  AND  ALL 
PERSONS  APPOINTED  in  the  exercise  of  the  powers 
granted  by  this  Act,  whether  by  the  Commission  or 
by  Hit  Manager  of  the  Association,  and  any  such  re- 
mo  v&'J  may  be  made  whenever  in  the  judgment  of  the 
Commission  the  public  interests  may  require  it: 

TO  ESTABLISH    THE  MILL    AND     ELEVATOR 
ASSOCIATION,  FIVE  MILLION  DOLLARS  WORTH' 
OF  BONDS  ARE  PROVIDED  FOR. 

Then  Chapter  241  of_the  1919  Session  Laws  provides 
for  i'he  Inspector  of  Grades,  Weights  and  Measures, 
who  shall  be  the  same  person  as  the  Inspector  and  Seal- 
er .of  Weights  and  Measures,  who  may  appoint  a  Chief 
'Depu?  v  Inspector  and  such  other  deputy  inspectors  and 
empk>;  res  as  he  may  deem  necessary  and  shall  FIX 
THE  IK  COMPENSATION.  An  appropriation  of  $20,- 
OOO.o*  is  provided  for  him. 

A  splendid  example  of  how  Townley  and  Lemke  were 
afraid  to  trust  the  railroad  commissioners,  elected  by 
the  people,  but  were  willing  to  depend  upon  their  tool, 
Governor  Frazier.  is  shown  in  the  Grain  Grading  Law. 
Chapter  56  of  the  1917  Session  Laws  provided  that  the 
Board  of  Railroad  Commissioners  should  appoint  the 
State  Inspector  of  Grades,  Weights  and  Measures.  But 
in  1919,  on  February  llth,  they  took  this  power  away 
from  the  Railroad  Commissioners  and  gave  it  to  their 
tool.  Of  course,  as  they  wanted  to  run  E.  F.  Ladd  for 
United  States  senator,  the  Governor  appointed  Ladd, 


44  THK  NONI'AHTISAN  LEAGUE 

Among  other  appointments  that  Ladd  had  to  build  up 
his  political  machine  was 

a  chief  deputy  state  inspector 

a  chief  elevator  accountant, 

deputy  inspector  of  grades,  weights  and 
measures, 

slate  deputy  inspector  of  grades,  weights 
and  measures, 

warehouse  inspectors. 
He  has  the  power  to : 

issue  licenses  to  warehouses, 

buyers, 

and  solicitors  of  grain 
and  to  employ  such 

experts, 

deputies, 

accountants, 

clerks 

and   other   employees 

jtfcessary  to  carry  out  the  provisions  of  this  Act  and 
TO  FIX  THEIR  COMPEKSATION.  (Pretty  soft  for 
Ladd). 

Under  this  law,  Ladd  and  his  deputy,  MeGovernr 
had  about  two  thousand  deputy  inspectors  and  buyer* 
of  grain.  Added  to  this  power  of  appointment.  Ladd 
was  president  of  the  Agricultural  College;  Oil  Inspector 
Pure  Food  Commissioner,  and  had  many  other  posi- 
tions giving  him  an  opportunity  to  build  up  a  big  ma- 
chine to  work  against  the  interests  of  the  farmers  of  the 
state  of  North  Dakota  and  to  fight  (Jronna.  the  man 
who  fought  to  secure  the  first  rural  credit  law  in  the 
United  States  of  America — a  law  giving  the  farmers 
money  at  five  percent  interest—the  very  law  that 
Townley  and  Lemke  fought. 

This  is  a  part  of  the  Socialist  m.achine  of  North  Da-' 
kota — a    machine    under    which    the    commissioner    of 


ITS  BIRTH,  A(  TIVITIKS  AND   LEADERS        45 

immigration  ran  appoint  any  number  of  men  and  FIX 
THEIR  COMPENSATION  and  can  send  these  men  to 
Washington,  Utah,  Texas,  Wisconsin  or  any  other  state 
in  which  the  Socialists  are  making  their  fight  and 
help  them.  And,  this  is  best  of  all,  THEY  CAN  BRING 
THESE  MEN  BACK  TO  NORTH  DAKOTA  NEAR 
ELECTION  TIME  AS  THEY  DID  LAST  JUNE.  I  am 
talking  about  a  department  of  the  State  government. 
Come  011  Frazier,  come  011  Towiiley,  the  Courts  are 
open.  Arrest  me  if  it  isn*  t  true ! 

They  have  a  man  by  the  name  of  "Walter  Liggett  in 
Washington,  D.  C.,  who  is  on  the  pay  roll  of  the  Immi- 
gration Commission.  Liggett,  Townley  himself  tesifi- 
ed  under  oath  was  a  Socialist.  The  Manager  of  the 
Mill  and  Elevator  Association  can  send  his  Socialistic 
tools  to  Austria,  Hungary,  Russia  or  Ko'tea — and  the 
farmers  of  North  Dakota  pay  the  bill. 

Is  it  any  wonder  that  some  of  us  men,  seeing  the  in- 
side of  this  monster  organization,  and  knowing  how 
they  were  fastening  it  onto  the  people,  rebelled? 

When  wo  saw  numberless  now  jobs  created  in"  ad- 
dition to  those,  that  already  existed— for  they  already 
had  the  naming  of  doctors,  lawyers,  veterinaries.  barb- 
ers, druggists,  bankers,  farmers,  and  laborers  to  var- 
ious boards — and  a  Fish  and  Game  Board  with  fourteen 
hundred  deputies  and  special  deputies — naturally  we 
protested  ! 

Why.  if  Town  ley  and  Lenike  were  on  the  square  and 
wanted  to  help  the  fanners,  didn't  they  let  the  ele- 
vator, with  its  millions  of  dollars,  be  run  by  a  BOARD 
OF  FARMERS  named  by  the  Governor  but  confirmed 
by  the  Senate,  which  is  elected  by  the  farme: 

"Why,  if  these  men  were  on  the  square  and  weren't 
trying  to  build  up  a  Socialist  machine,  DIDN'T  TITEY 
tET  THE  $10,000,000.00  PROVIDED  FOR  THK 
REAL  KSTATE  BONDS,  TO  BE  SPENT  by  the  In- 


46  THE  NONPARTISAN  LEAGUE 

dustrial  Commission  (WHICH  IS  THE  GOVERNOR) 
•go  to  the  Board  of  University  and  School  Lands, 
whicb  board,  elected  by  the  people,  for  over  THIRTY 
YEAES  HAS  HANDLED  MILLIONS  OF  DOLLARS 
AND  HAS  NOT  LOST  A  PENNY?  They  were  afraid  to 
trust  the  regular  farmers — they  appointed  Seaman 
Smitii  the  Socialist  to  assist  in  the  spending ! 

Unless  the  people  wake  up  soon,  they  will  fasten  up- 
on themselves  A  SOCIALIST  POLITICAL  MACHINE 
which  IS  A  THOUSAND  TIMES  WORSE  THAN  THE 
OLD  GANG  EVER  WAS,  and  which  they  will  spend 
millions  of  dollars  to  get  rid  of,  for  today,  when  an 
election  rolls  around,  what  a  force  of  workers  they 
have !  As  a  matter  of  fact,  they  organize  the  year 
rountL  organize  at  the  expense  of  the  tax-payers  of 
North  Dakota.  What  a  hydra  headed  snaky  monster 
it  is?  The  farmer  thinks  he  runs  the  machine— he 
doesn't — the  machine  is  running- him! 

For  example  here  is  a  letter  written  by  Jos^-uh 
Cogrhlau  appointed  by  the  Governor,  to  be  Clerk  of 
Th<  Supreme  Court,  which  letter  was  written  on  Su- 
preme Court  Stationery  and  sent  out  under  state  post- 
age. 

Bismarck,  N.  Dak.  Jan.  19.  1920. 
Dear  sir: 

I  am  authorized  by  the  Chairman  of  the  Republican  Central 
Committee  of  North  Dakota  to  solicit  campaign  fund^  for  the 
comins:  primary  campaign  in  this  state.  Any  money  you  may 
contribute  will  be  used  in  furthering  the  interests  of  the  ad- 
ministration now  in  power  in  North  Dakota. 

As.  you  no  doubt  now  ,it  is  customary,  during  political  cam- 
paigns for  every  one  holding  office  under  the  administration 
in  power  to  do  his  share-  in  trying  to  uphold  the  administra- 
tion under  which  he  is  working,  if  he, believes  such  adminis- 
tration is  doing  the  right  thing  for  the  people  of  the  State. 
I  hope  you  will  not  feel  put  out  in  any  way,  by  the  request  for 
some  financial  contribution  to  the  coming  campaign. 

As  a  matter  of  politics  it  would  be  better  if  you  keep  this 
communication  confidential,  but  as  far  as  I  am  concerned  I 
do  not  care  who  knows  that  I  am  trying  to  raise  money  in 
aid  of  the-  Nonpartisan  League.  I  think  it  is  a  mighty  good 

*Note — William  Lemke  of  the  Nonpartisan  Executive  Com- 
mittee was  the  Chairman. 


ITS  RIRT1I.   ACTIVITIES   AND   LKADKKS        47 

cause  for  a  .man  to  contribute  a  little  money  to,  and  while, 
as  I  said  I  would  prefer  you  said  nothing  about  this  matter,  if 
you  feel  otherwise,  it  makes  no  difference  to  me. 

In  North  Dakota,  under  the  rule  of  the  Old  Gang,  every 
office  holder  in  the  State,  including  even  the  janitors  at  the 
State  Institutions  had  o  dig  up  ten  per  cent  ot  their  yearly 
salary,  at  every  political  campaign,  most  of  which  contribu- 
tions were  used  to  further  some  pet  scheme  of  the  "Bosses" 
or  to  buy  booze  with.  The  money  which  we  are  trying  to 
raise  now  however,  will  be  used,  every  dollar  of  it  for  clean, 
legitimate  purposes;  practically  all  of  it  will  be  used  in  paying 
the  expenses  of  speakers  in  North  Dakota,  who  will  set  forth 
the  facts,  as  we  see  them,  before  the  people.  I  would  suggest 
that  you  contribute  $75.00.  If  you  have  not  the  money  just 
now,  we  will  be  glad  to  take  your  post  dated  check,  due  ^pril 
.  1st,  or  sooner,  if  you  wish.  Make  your  check  payable  to  cash. 
Very  truly  yours, 

Joseph  Coghlan 

And  here  is  another  letter  written  by  Mrs.  Depuis, 
wife  of  one  of  the  Railroad  Commissioners.  This  let- 
ter was  written  on     railroad     commission    stationery 
and  sent  out  under  state  postage. 
Dear  Madam: 

Enclosed  herewith  find  your  membershop  certificate  Pardon 
the  delay  in  delivering  it  to  you  but  most  of  the  cards  were 
issued  at  the  meetings  but  not  seeing  you  I  am  now  mailing 
this  to  you. 

Our  new  membership  enrollment  has  started  and  members 
can  rejoin  for  the  1920  period  at  any  time. 
There  is  to  be  a  social     meeting,     refreshments,  music     and 
interesting  talks  Jan.  8th,  Thursday  night. 

Be  sure  to  come. 

Your    truly, 

E.  Dupius 

Secretary. 
With   the   employees    ^'ivin<r   part   of     their     salary, 

what  a  fund  can  be  raised — (especially  when  the  salary 
can  be  fixed  by  Town  ley,  Lemke  and  Wood  through 
their  tools.  They  can  make  the  salary  $10,000.00  and 
room  and  board,  or  they  can  make  it  $15,000,  or  they 
fan  make  it  $1800  per  month  as  they  paid  their  Ohio 
expert)— TO  KKJIIT  TIIK  FAJIMKRS  WI1HX  THEY 
•\VAKK  IT. 

Arid  whenever  there  is  a  man  who  has  cnura-j<- 
Note:  If  all  the  members  of  the  State  department  of  which  the 
man  to  whom  this  letter  was  written  belongs,  conributed  in 
that  proportion,  Lemke  must  have  gotten  nearly  ten  thousand 
dollars  from  this  onet  department. 


48  THE  NONPARTISAN  LEAGUE 

en<m£±.  to  run  for  Governor,  or  some  other  state  of- 
fice, t^e  state  law  comes  along  and  states  that  he  can- 
not ST»end  more  than  fifteen  percent  of  his  first  year's 
salary,  which  for  Governor  would  mean  $750.00^- 
$750.00  AGAINST  THAT  TREMENDOUS  MA- 
CHINE. 

Oil  r  states  ought  to  take  heed — if  they  wish  a  po- 
litical machine  of  this  kind,  I  believe  the  farmers  of 
NortI  Dakota  will,  soon  be  glad  to  give  them  ours — 
and  Ve  GLAD  TO  KISS  IT  GOODBYE, 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       49 
CHAPTER  V 

V 

CRUCIFYING  HONEST  OPPOSITION 

The  Socialist  leaders  through  control  of  the  presa 

can  i-uin  the  reputation  of  any  man  who  will  not  hum- 

i.ly  ?  end  his  knee  to  them.  Nothing  is  more  subversive 

to  ti/e  undermining  of  genuine  democracy  than  for  two 

or  three  men  to  set  themselves  up  as  dictators,  with. 

ite  control  of  a  large  portion  of  the  press,  with. 

whi"'.i  they  can  villify,  blacken  and  tear  to  shreads  the 

character  of  any  honest  citizen,  who  dares  to  utter  a 

in  protest. 

ry  man  who  disagrees  with  their  viewpoint  is  a 

••••»       .   and  a   scoundrel  in   the  employ  of  "Big  Busi- 

which   is  only  another  name  for  what  the  So- 

eial>Ts   call    the   "Capitalist   Class."   No   form   of  cal- 

ina       is  too  low.  Attacks  on  or  praise  of  religion  or 

nationality  is  employed" which  ever  temporarily  suits 

to  jrct  money  or  votes  and  their  espionage  sys- 

irculates  false  stories  whenever  the  leaders  deeiti. 

it  >'^'-ntial  or  safe. 

I  ill  name  some  North  Dakota  men,  who  although 
end<  fsed  or  appointed  to  office  since  the  Socialists 
hav-  been  in  control  have!  temporarily  imd  to  face  their 
ii.-wx|>j|per  attacks, 

S'MIOII  .1.   Xagel.  A  FAKMKR  who  for  thirty  years 
-      ve<l  on  his  farm  near  I  la  \  marsh,  an  ardent  Non- 
partisan,  originally.  His  character  was  so  unimpeach- 
able  that   he  was   appointed  by  Governor  Frazier    to 
Ite  nne  of  the  three  men  on  the  Board  of  Control  of 
North  Dakota.  Townley's  tools  went  to  Mr.  Nagel  and 
nsk'-d  him  to  appoint  a  socialist  by  the  name  of  Sea- 
man A.  Smith  of  Beach,  to  be  Warden  of  the  Peni- 
iry.  Nagel  refused  to  do  their  bidding,  and  the  so- 


50  THE  NONPAKTISAN  LKACTK 

cialist  leaders  made  "'God  their  threats  to  get  his  po- 
sition- when  the  legislature  met  they  had  it  abolish 
the  Board  of  Control  so  that  Mr.  Nagel  would  lose  his 
job. 

Representative  Martin  Koller  of -Hebron,  a  FARM- 
ER elected  by  the  farmers,  who  for  thirty  years  had 
lived  on  his  farm,  although  he  supported  the  League 
platform,  refused,  to  vote  for  the  notorious  print- 
ing and  newspaper  graft  Jaw,  with  the  result  that  he 
became  a  marked  man  and  "an  enemy  of  the  farmers" 
and  "a  tool  of  Big  Business." 

Senator  Fred  Mees  of  Glen  Ullin,  elected  by  the 
farmers,  fifteen  years  a  farmer,  refused  to  abide  by 
the  vote  of  the  caucus  on  the  newspaper  bill,  board  of 
education  bill,  and  tax  bill,  and  was  branded  as 
1  i crook '*  <»nd  "  a  scoundrel"  and  ''a  tool  of  Biir  Bus- 
iness. ' ' 

Senator  A.  (I.  Storstad  of  Oass  County,  elected  by 
the  farmers  refused  to  sign  the  agreement  to 
abide  by  the  vote  in  the  secret  caucus,  and  has  also 
been  called  all  the  choice  names  these  scoundrels  ran 
lay  their  tongues  to. 

Representative  Fred  Nims,  a  farmer  elected  by  the 
farmers,  of  Lisbon,  Ransom  County,  became  so  dis- 
gusted with  the  autocratic  ''people  be  damned"  atti- 
tude of  the  socialist  leaders,  that  he  left  the  legisla- 
iire  in  disgust  and  went  home.  He  also  has  been  con- 
demned to  eternal  damnation  and  his  neighbors  warn- 
ed against  associating  with  him. 

Representative  liert  Arnold  of  Bowman  CnuiHy.  a 
farmer  eleded  by  the  fanners,  made  a  public  apology 
for  voting  for  a  resolution  condemning  me,  and  that 
was  sufficient  to  earn  for  him  the  name  of  '' "Benedict 
~  Arnold,  the  Traitor."  Their  newspapers  hounded  this 
man  so  thoroughly  that  he  left  the  state. 

Representative   Nels  Kunkel,   formerly     sheriif     of 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       51 


County,  elected  by  the  farmers  refused  to  bow 
his  head  in  adoration  of  the  Socialist  leaders,  and  has 
been  branded  as  ''a  traitor,"  "a  crook1'  and  "gen- 
uine all  round  big  business  tool." 

Representative  W.  E.  Krueger  of  Mantador,  Rich- 
land  County,  elected  by  the  farmers,  refused  to  vote 
for  the  printing  bill  and  the  socialist  leaders  went 
down  there  in  person  to  defame  him  before  his  neigh- 
bors. 

Representative  Edward  Herbert,  a  farmer  elected  by 
the  farmers,  of  Killdeer,  in  Dunn  County,  refused  to 
vote  to  take  away  the  powers  of  Miss  Minnie  J.  Niel- 
son,  i  r  this  he  was  immediately  ostracized. 

Representative  Jim  Harris,  elected  by  the  farmers, 
refusal  to  vote  for  the  educational  bill  and  some  of 
lhe.ir  spite  measures,  and  for  this  he  was  called  the 
"too.  'if  Big  Business,"  and  a  "crook." 

Representative  T.  T.  Doiiner,  a  farmer,  elected  by 
the  f-  :iuei-s,  of  McTutosh  County  could  not  stand  the 
rotte*  if.ss  and  lie  lias  been  blacked  also. 

Representative  Henry  Nathan  of  Logan  County,  a 
T'arrr.'-  elected  by  the  farmers,  refused  to  bend  his 
knee  ml  he  also  has  been  consigned  to  eternal  dam- 
nation 

VY..  k  E.  Packard,  appointed  by  Governor  Frazier 
as  ta:\  eommissioner,  when  he  refused  to  recommend  a 
one  r.an  tax  commission,  a  proposition  he  had  always 
i'onsT''.  was  branded  as  a  fool,  a  crook,  and  a  traitor, 
and  as  a  person  ot  fit  for  decent  people  to  associate 
with. 

Carl  J.  Eliason,  a  janitor  who  refused  to  serve  meals 
to  a  luinoh  of  guests  that  Governor  Frazier  had,  lost 
his  job  over  night.  He  was  such  small  fry  that  they  did 
not  waste  much  newspaper  space  on  him. 

"Mick"  O'Connor,  a  street  car  driver,  among  other 


52       THE  NONPA  1  MM  SAN  LEAGUE 

things.  critici/ed  one  of  their  judges,  and  ".Mick"  lost 
iiis  job. 

Charles  .McDonald,  the  Warden  of  the  Penitentiary, 
appointed  by  appointees  of  Governor  Frazier,  among 
other  things  refused  to  release  some  I.  W.  Ws.  and 
they  sent  a  socialist  out  to  ask  for  his  resignation,  and 
they  got  it,  arid  appointed  an  I.  W.  "\V.,  L.  L.  Stair, 
in  his  place  as  Warden. 

George  McFarland,  one  of  the  best  known  progres- 
sives in  North  Dakota,  President  of  the  Valley  City 
Normal,  refused  to  worship  at  the  foot  stool  of  so- 
cialism, and  although  he  had  been  President  of  the 
Normal  for  twenty-six  years,  his  resignation  was  de- 
manded and  obtained. 

Representative  William  Pleasance  of  Pembina 
County,  a  farmer,  elected  by  the  farmers,  refused  to 
sign  up  for  the  secret  caucus,  was  immediately  brand- 
ed as  an  outcast  and  enemy  of  the  farmer. 

Representative  A.  G.  Lowe  of  Pierce  County,  a  far- 
mer, elected  by  the  farmers  refused  to  be  a  rubber 
stamp  and  was  branded  as  a  first  class  crook. 

State  Auditor  Carl  Kositzky.  former  county  com- 
missioner who  made  Alex  Mcl\eii/ie.  the  old  railroad 
gangster,  with  whom  the  socialist  leaders,  are  now, 
working  hand  in  hand,  pay  taxes  on  his  water  plant, 
the  taxes  being  several  years  delinquent.  Kositzky  re- 
fused to  sit  silently  by  while  the  taxes  were  raised  two 
or  three  hundred  per  cent,  and  was  immediately 
branded  with  the  name  of  ;'Krazy  Karl,"  and  has 
since  been  hounded  day  and  night.  No  epiteth  has 
been  too  vile  for  their  newspapers  to  use  against  him. 

Thomas  Hall,  Secretary  of  State,  a  member  of  Union 
Labor,  and  who  worked  in  the  railroad  shops  for 
years,  refused  to  let  them  run  his  office  and  has  been 
hounded  almost  as  much  as  Kositzky." 

Senator   Albert   Stenmo.    a     farmer     from      Grand 


ITS  BIRTH,  ACTIVrriKS  AND   LKADKKS 

Forks  County,  who  refused  the  socialist  leaders,  nom- 
ination for  Lieutenant  Governor,  declined  to  sign  up 
for  the  secret  caucus,  and  was  branded  as  a  crook. 

A.  T.  Kraabel,  Lieutenant  Governor,  refused  to  ap- 
point.  committees  lie  was  asked  to  appoint  hy  the  So- 
cialist leaders,  and  was  branded  as  a  tool  in  the  em- 
ploy of  Big  Business. 

George  M.  Young,  a  member  of  Congress  twice  en- 
dorsed by  the  League  refused  to  do  their  bidding  in 
Congress  and  lias  been  branded  as  an  enemy  of  the 
farmer. 

Railroad  Commissioner,  Sam  Aandahl,  of  Litchville. 
a  farmer  elected  by  the  farmers,  criticized  some  of  the 
activities  of  the  socialist  leaders,  and  immediately  came 
under  the  ban,  the  latest  story  about  him  was  that  "  1% 
Business,  had  it  on  him." 

Obert  A.  Olson,  State  Treasurer,  endorsed  by  the 
League  did  some  acts  which  did  not  suit  the  socialist 
leaders,  and  the  socialist  papers  immediately  pounded 
him. 

Justice  L.  E.  Birdzell,  of  the  Supreme  Court,  decid- 
ed against  the  Socialists  in  the  Scandinavian  American 
Bank  case  and  immediately  became  a  target  for  their 
editorials.  Even  the  courts  are  not  immune. 

La  ureas  Wehe,  appointed  by  Governor  Frazier.  of 
the  Workmen's  Compensation  Bureau,  after  a  few 
months  in  office  did  not  consult  the  Socialist  leaders 
sufficiently,  with  the  result  that  he  was  remove*  1  by 
Governor  Frazier  and  their  newspapers  branded  him 
also. 

Representative  L.  I).  AVylie.  a  farmer  no\v  dece 
from  Morton  County,  elected   by   the   farmers,   refused 
to  follow  the  dictates  <>f  the  socialist    leaders,  and  was 
branded  as  a  crook  and  died  a  few  months  later. 

Representative  Mike  Lang  of  Morton  County, 


54  THE  NONPARTISAN  LEAGUE 

ed  to  follow  the  socialists,  and  was  likewise  branded  aa 
a  crook. 

M.  P,  Johnson,  one  of  the  originators  of  the  Nonparti- 
>an  League  and  elected  to  the  railroad  commission  in 
1916  with  the  League  endorsement,  was  thrown  down 
principally  because  he  refused  to  stand  for  the  appoint- 
ment of  J.  A.  McGovern  as  deputy  state  grain  inspect- 
or. 

Charles  W.  Bleick,  also  elected  railroad  commission- 
er in  1916,  with  League  endorsement,  was  viciously  at- 
tacked for  the  same  reasons  as  Mr.  Johnson. 

Representative  Charles  Schiek.  a  fanner  of  Lark, 
Grau"  '  -oiuity,  refused  to  take  orders  iiud  was  like- 
wise •  .-anded  as  an  enemy  of  the  fanners  of  North 
bako 

0.  [  Depuis  did  not  follow  the  dictates  of  the  so- 
ciali*:  headers  in  some  rulings,  and  lias  been  branded 
by  tr«  j  as  a  man  who  "Sold  out." 

J.  ;  \Vaters,  appointed  by  Governor  Frazier  and 
Commissioner  of  Agriculture  and  Labor.  -John  Hagan, 
^>ver  /  protest,  to  be  Manager  of  the  Hank  of  North 
l>ak  it  .  irot  into  a  row  with  them  and  lias  been  brand- 
ed a>  :i  enemy  of  the  farmer. 

J.  W.  Briuton  the  private  confidential  man  of  Town- 
ley  who  "put  over"  the  notorious  printing1  bill,  and 
also  the  store  scheme  for  them,  refused  longer  to  da 
their  Bidding  and  he  also  was  immediately  branded 
as  a  '-y>M)k  and  black  mailer — but  for  five  years  he  was 
their  <•  >iifidential  man. 

Thomas  Allen  Box,  one  of  the  men  mixed  up  in  the 
notorious  Valley  City  Bank  deal  became  a  political 
load  to  the  league  leaders,  and  was  branded  as  a 
c-rook  AFTER  THEY  HAD  USED  HIM! 

J.  J.  Hastings,  who  testified  that  Townley  sent  him 
to  Valley  City  on  the  notorious  American  Exchange 


JTS  BIRTH,  ACTIVITIES   AND   LKADKKtf        :>:> 

Bank,  was  branded  as  a  crook,  after  he  too  had  be- 
come a  political  load. 

As  for  myself  I  have  been  called  all  the  names  that 
the  socialists  loaders  could  think  of,  among  them  : 
a  fool, 
a  coward, 

a  tool  of  big  business, 
a  solicitor  of  slush  funds, 
a  drunkard, 
a  free  lever, 
pro-German, 
a  slacker,  and 
a  user  of  state  money  for  private  purposes. 

And  when  I  sued  the  Courier-News,  one  of  the  lead- 
ing newspapers  of  the  Socialist  leaders  for  damages 
and  gave  them  an  opportunity  to  prove  just  exactly 
what  I  was  they,  after  all  their  intimate  knowledge  of 
me,  COULD  NOT  EVEN  ANSWER  THE  COM- 
PLAINT, but  demurred  and  when  they  were  DE- 
FEATED IN  THE  DISTRICT  COURT,  APPEALED 
to  the  Supreme  Court  where  the  appeal  is  now  pend- 
ing. 

All  of  the  men  I  have  named,  and  a  majority  of 
them  are  farmers,  were  either  endorsed  by  the  So- 
cialist leaders  or  appointed  to  office  by  them,  or  their 
appointees.  As  far  as  I  know  every  one  of  those  men, 
with,  the  exception  of  "Box,  Hastings,  Brinton  and  Wa- 
ters, is  a  progressively  inclined  man,  opposed  to  the 
activities  of  the  old  gang  bosses  of  North  Dakota. 

These  men  were  not  socialists,  und  wherever  possi- 
ble, the  socialist  leaders  in  the  replacing  of  these  men 
are  either  endorsing  socialists  for  olfiee  or  men  \vh<> 
are  socialistically  inclined. 

For  jnstanee,  when  the  socialist  leaders  first  got 
going  they  did  not  dare  endorse  more  than  two  so- 
cialists for  places  on  the  state  ticket.  One  was  R.  H. 


»6       THE  NONP  ARTISAN  LEAGUE 

of  Mohall,  whom  they  endorsed  and  elected  to 
he  Supreme  Court  of  the  State.  Grace  in  1912  ran  for 
s  Attorney  of  Renville  County  on  the  Socialist 
:ick<  t  and  got  417  out  of  1297  votes. 

•  other  socialist  was  Howard  Wood,  whom  they 

^ed  and  elected  Lieutenant  Governor.  Wood  had 

>e>      a  delegate  to  the  Socialist  County     Convention 

leki  in  Minot  on  March  6,  1914,  which  convention  was 

:>re>:ded  over  by  D.  C.  Dorman,  later  manager  of  the 

trtisan  League  of  Montana,  and  among  the  dele* 

ra:  -  were  J.  J.  Fleckten,  now  Stato     Senator     from 

vVar-.l  County,  elected  on  the  Republican  ticket.  L.  L. 

.Jr:~itli  who  as  been  mixed  up  in  many  of  their  allied. 

•o!     TIIS,  and  Arthur  Le  Seuer  who  aftrw,-;ir<ls  ran  for 

V-:<l<Mit  of  the  United  States  on  the  Socialist  ticket. 

same  convention  F.  B.  Wood,  Vice  President  of 

h^  Nonpartisan  League  was  endorsed  for  County  Au- 

;lit<>r.  of  Ward  County.  He  is  the  father  of  Lieutenant 

JOY- rnor  Wood. 

i       1!>'20,  the    League      leaders      heeame      even     bold- 

»r.  This  time  they  endorsed  for  State  Treasurer  R.  H. 

r  of  jiear  Yucca,  North  Dakota,  a  registered  so- 

'!.;    si   for  years.  He  bad  been  one  of  the  delegates  to 

M-ialist    convention  OVER   WHICH    A.   C.    TOWN7- 

\^\  HIMSELF  PRESIDED. 

T]  e  socialist  leaders  would  be  unable  to  crucify 
ion.  st  opposition  WERE  IT  NOT  FOR  THE  NOTOR- 
IOUS NEWSPAPER  PRINTING  BILL.  This  bill  is 
cimwn  as  Chapter  188  of  the  Laws  of  North  Dakota 
[or  ]!»!!>.  and  is  as  follows: 

Chapter  188. 
STATE   PUBLICATION   AND   PRINTING    COMMISSION 

Act    Creating   a   State   Publication   and   Printing   Com- 
niseion;   Prescribing  its  Duties  and  Powers;   and  Repealing 
ill  Acts  and  Parts  of  Acts  in  Conflict  Herewith 
BE   IT    ENACTED   BY   THE   LEGILATIVE  ASSEMBLY   OF 
FHE  STATE  OF  NORTH  DAKOTA: 
S^<3.   1.     In  lieu  of  the  Commissioners   of  Public  Printing, 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS        57 

there  is  hereby  created  a  commission  to  be  known  a?     the 
State  Publication  and  Printing  Commission. 

Sec.  2.  The  said  Commission  shall  be  composed  of  the  Sec- 
retary of  State,  the  Commissioner  of  Agriculture  and  Labor, 
and  the  Chairman  of  the  Board  of  Railroad  Commissioners 
It  ishall  hold  its  first  meeting  in  the  office  of  tne  Secretary 
of  State  within  twenty  days  after  the  passage  and  approval 
of  this  Act. 

Sec.  3.  The  said  Commission  is  authorized  to  appoint  a 
State  Printer,  who  shall  also  be  Secretary  to  the  Commission 
and  such  appointee,  may,  by  the  Commission,  toe  removed 
with  or  without  cause.  The  person  so  appointad  must  at  the 
time  of  his  appointment  have  been  a  resident  of  the  State  01 
North  Dakota  for  at  least  one  year  last  past,  and  must  bf 
a  practical  expert  printer.  He  shall  receive  an  annual  salar> 
of  Twenty-four  Hundred  ($2400.00)  Dollars;  he  shall  per 
form  all  the  duties  now  required  of  the  expert  printer,  anr 
such  other  duties  as  may  be  assigned  to  him  by  the  Com 
mission  hereby  established,  and  shall  maintain  his  office  Ir 
the  State  Capitol. 

Sec.  4.  In  addition  to  the  duties  and  powers  now  vestec 
by  law  in  the  board  heretofore  known  as  the  Commission 
ers  of  Public  Printing  the  Commission  shall  have  the  powe: 
to  make  all  printing  contracts  in  all  matters  of  state  print 
ing,  and  the  power  to  designate  a  newspaper  in  every  conn 
try  in  the  state,  and  a  newspaper  or  newspapers  in  the  state 
in  which  publications  required  by  law  to  be  published  >r 
state  officials,  must  be  made'.  It  shall  be  tne  fluty  of  sai< 
Commission  to  designate  in  every  county  of  this  state  ; 
newspaper,  which  shall  be  the  official  newspaper,  whicl 
shall  be  the  official  newspaper  in  each  county  in  which  it  i 
designated,  until  its  successor  shall  be  chosen  as  provide* 
by  law;  and  in  said  newspapers  in  each  county  as  designat 
ed,  shall  be  published  official  proceedings  of  the  Board  o 
County  Commissioners  in  each  county  respectively,  and  al 
other  notices  and  publications  that  are  now  required  by~Ta\ 
to  be  published  by  county  officers  in  the  several  counties 
all  summons,  citations,  notices,  orders  and  other  processe 
in  all  actions  or  proceedings  in  the  supreme,  district,  o 
county  or  justice  courts,  which  are  or  may  be  hereafter  re 
quired  by  law  to  be  published  in  the  respective  counties  o 
the  state;  all  publications  of  every  nature  that  are  now  o 
may  hereafter  be  required  to  be  published  by  state  officials 
all  notices  of  foreclosure  by  advertisement  or  real  estate  o 
chattel  mortgages  or  of  other  Hens  on  real  or  personal  iproi 
erty;  all  notices  of  whatever  kind  and  character  now  o 
hereafter  required  by  law  to  be  published,  in  said  county 
provided,  however,  that  in  organized  cities,  towns  or  village; 
where  no  official  newspaper  is  published,  said  city,  town  o 
viallage,  council,  commission  or  board,  may  designate  an  o 
ficial  newspaper  for  the  publication  of  such  notices  and  legs 
publications,  as  are  now  or  may  hereafter  be  required  b 
law  for  said  cities,  towns  or  vial  luges,  including  legal  m 
tices  and  official  statements  of  the  schools  within  such  ci 


THK  NONTAKTJSAN   LKACl'l. 

towns  and  villages,  and  the  statements  of  banks  and 
other  corporations  th*:cin;  but  in  cities,  towns  or  villages 
where  the  commission  designates  an  official  newspaper,  such 

notices    and    legal    publications    as    arc    now    required   by   law 
to  he   published    by  cities,  towns  or  villages,   shall  be  publish- 
ed  in   the  official  newspaper  designated    by  the-  Commission. 
The    Commission    shall    have    the    power    and    it    shall    be    its 
duty  to  select   one  or  more  legal  newspape-rs  in  this  state  for 
tlie  •  publication    of   all    state    legal   notices,   including   notices 
for  the  'pubieation   of  any  reports  of  corporations   doing  bu>i 
ness    in    this    state,    now   required    by    law    to    be    published, 
either  from  the  office  of  the  Insurance  Commissioner  or  Sec- 
retary of  State  or  other  state  officers,  and  it  shall  have  the 
power,   in   addition   to  the  provisions   of   law   now   existing  to 
make    contracts    with    any    printer,    newspaper   publisher,   per- 
son  or  corporation   for  the   publication    of  any   state  legal  no- 
tice,   for  the   printing   of   the   state   documents,   laws,   journals 
or   other   state   matters,   or   for   the    making  ox  providing     of 
srnte  stationery,   of  blanks  and   other   documents    whatsoever 
in   their  judgment    they   may   determine   so  to  do.   It  shall  be 
the    duty    of    every    newspaper    in    this    state    thus    designated 
by    the    Commission    to    send    to   the    Secretary    of    such   Com- 
mission,  at    1'ismarck.  weekly   two  copies   of   every  issue  pub- 
lished   by    it.    and    the    Secretary    shall    keep   on    file   in  his  of- 
fice  in   the   St-ite  Capitol   a   complete   tile   of  every    such  ri- 
paper,    and    shall    furnish    to    any    person    co-rtitied    copies      of 
matter   contained    in    any    of   such   papers,   upon   the  payment 
by    such    person    of   the   sum   of   ten    cents    per   folio   for  each 
ropy   so   furnished    by   him;    tlie   fee   for  such   certified   copies 
shall   be   turned  over  to  the   State   Treasurer  on   the   first   bus- 
iness day   of  each   month. 

Sec.    B.     The    intent    of    this    Act    is    to    co-ordinate   publica- 
tion  of  all   state   legal   notices,   publications,   reports   and    : 
oi    every    kind    and    nature    under    OC'e    supervising    head,      to 
have   definite   and   certain    legal   newspapers   in   this   state,   so 
that   information  can  be  readily  secured  concerning  any  1 
publication  and   to  economize  in  the  matter  of  state  pritmg; 
and    to   keep   a    complete    system    of   tiles   where   legal  publica- 
tions  of   every   kind    in   this   state    can    be   readily  found.   This 
shall    receive    a    liberal    construction    in    order  to    effectu- 
ate   the    pui  poses    and    intent    thereof 


Tinier  this  law  the  Socialist  loaders  or  irani/ed  p; 
after  |>;iper  with  articles  of  incorporation  like  those  of 
the  (Iraml   Forks  American   which   follow^: 

MWTH    DAKOTA 

ARTICLES    OF    INCORPORATION 
OF 

CRANlt     FORKS     AMF.R1CAN. 

KNOW    ALL    AIKN    l?Y    THKSK    PRKSKNTS:    That    we,   the 
undersigned,    have   this   day    voluntarily    associated   ourselves 
t^r  for  the  purpose  of  forming  a   corporation  under  tho 
(aws  of  the   State  of   North  Dakota. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS 

ARTICLE   1. 

The  name  of  this  corporation  is  GRAND  FORKS  AMER- 
ICAN. 

ARTICLE  2. 

The  purpose  for  which  this  corporation  is  formed  is:    To 
engage  in,  the   business   of   newsipaper  proprietors   and  pub- 
lishers and  In  connection  therewith  to  carry  on  the  busi 
of  job  printers,  engravers,  publishers,  lithographers  and  e 
trotypers;  to  build,  construct,  erect,  purchase,  rent  or  other- 
wise acquire  any  building,   office,  workshop,  plant  and  ma- 
chinery or  other  things  necessary  or  useful,  and  to  do  all 
other  acts  and  things   that   a  natural  person   may  lawfullv 
do  in  carrying  on  a  similar  business. 

ARTICLE  3. 

That  the  place  where  its  principal  business  is  to  be  trans- 
acted and  Us  post  office  address  shall  be  the  City  of  Grand 
Forks,  County  of  Grand  Forks  and  State  of  North  Dakota. 

ARTICLE  4. 

That  the  term  for  which  it.  is  to  exist  is  twenty  (20)  y« 
from  and  after  the  day  of  its  incorporation. 

ARTICLE  5. 

The  capital  stock  of  this  corporation  shall  consist  of  five 
hundred  shares  (500)  of  common  stock  of  the  par  value  of 
two  dollars  ($2.00)  per  share  and  nine  Hundred  nir 
(900)  shares  of  preferred  stock  of  the  par  value  of  One  Hun- 
dred Dollars  ($100.00)  per  share.  The  holders  of  the  prefer- 
red stock  shall  be  entitled  to  cumulative  dividends  thereon 
at  the  rate  of  seven  dollars  per  share  for  each  and  ev&ry 
cal  year  of  the  company,  (payable  out  of  any  and  all  surplus 
or  net  profits  annually,  and  when  declared  by  the  board  of 
directors.  The  remaining  surplus  or  net  profits,  if  any,  shall 
be  applied  in  paying  cumulative  dividends  on  the  common 
stock  at  the  rate  of  seven  dollars  per  share  for  each 
every  fiscal  year  of  the  company,  and  the  remainder  sin- 
plus  or  net  profits,  if  any,  shall  be  paid  as  a  special  dividend 
on  both  the  preferred  and  common  stock  share  and  share 
alike. 

In  the  event  of  any  liquidation  or  dissolution  or  winding 
up  of  the  corporation,  the  holders  of  the  preferred  stock 
shall  be  entitled  to  be  paid  in  full  both  the  par  amount  of 
their  shares  and  the  umpaid  dividends  accrued  thereon,  be- 
fore any  amount  shall  be  paid  to  the  holders  of  the  common 
stock. 

ARTICLE  6. 

The  preferred  stock,  after  it  hn>  boon  paid  In  full  shall 
he  exempt  from  all  liability  for  tho  mrpora«.e  debts  and  ob- 
ligations. Not  more  than  1fi  p«-r  cent  of  the  -proceeds  derived 
from  the  sale  of  preferred  stock  shall  over  be  used  for  th»- 
purpose  of  organization. 

The  common  stock  shall  bo  issued  in  payment  for  promo- 
tion and  organization  work  and  for  services  rendered  or 
to  be  rendered,  and  after  the  same  has  been  issued  It  shall 
be  exempt  from  all  liability  of  corporate  debts  and  oblige- 


60  TMK  NOM'AUTLSAN  LKACTK 

lions,   and  there   shall   be   no  individual   liability   thereon  as 
to   the  holders   thereof. 

ARTICLE  7. 

That  the  number  of  its  directors  shall  be  FIVE  and  that 
the  names  and .  residences  of  those  who  are  appointed  to 
serve  until  their  successors  are  elected  and  qualified  are: 

NAME    ,  ADDRESSES 

John  N.  Hagen.  Pres.,  Deering,  N.  D. 
A.  (I.  Sarlie,  Sec.  and  Treas.,  Grand  Forks,  N.  D. 
Harry  Bronson.   Grand  Forks,  N.  D. 
O.  H'.  Olson,  New  Rockford.  N.  D. 
Nels  Gravam,  Park  River.  N.  D. 

ARTICLE  8. 

To  guard  against  litigation  by  e-ntrenched  wealth,  the  di- 
rectors may  buy  the  preferred  stock  of  any  stockholder  by 
tendering  him  the  par  value,  cumulative  dividends,  together 
with  a  10  per  cent  premium,  and  such  stockholder  shall 
cease  to  have  any  further  interest  in  the  corporation. 

ARTICLE   9. 

The  board  of  directors  may,  by  means  of  a  resolution 
adopted  by  a  majority  of  the  whole  board,  at  a  meeting  duly 
called  for  that  purpose,  designate  three  directors  to  consti- 
tute an  executive  committee,  wrhich  committee  shall  have 
and  exercise  all  the  powers  and  rights  of  the  full  board  of 
directors  in  the  management  of  the  business  and  affairs  of 
the  corporation. 

ARTICLE   ID. 

The  board  of  directors  shall  have  the  power  to  elect  a 
president,  vice  president.  Secretary  and  Treasurer  and  such 
other  officers  and  assistants  as  it  may  from  time  to  time 
deem  necessary. 

ARTICLE  11. 

Any  officer  or  director,  whether  elected  by  the  stockhold- 
ers or  named  in  the  certificate  of  incorporation  or  elected  or 
appointed  by  the  board  of  directors,  may  be  removed  at  any 
time,  by  affirmative  vote  of  a  majority  of  the  stockholders 
of  the  corporation  with  or  without  cause. 

ARTICLE  12. 

Any  officer  elected  or  appointed  by  the  board  of  directors 
may  be  removed  at  any  time  by  the  affirmative  vote  of  a 
majority  of  the  whole  board  of  directors. 

IN  WITNESS  WHEREOF,  we  have  hereunto  set  our 
hands  and  seals  this  17th  day  of  July.  A.  I).  1917. 

NAMES.  RESIDENCES. 

Win.   Lemke,   Fargo,   N.    I). 
P.  B.  Wood.  Deering.   N.   I). 
L.  L.  Griffith.  Minot.  Nr.  D.          / 
STATE   OF  MINNESOTA 
County  of  Ramsey. 

On  this  16th  day  of  July,  in  the  year  one  thousand  nine 
hur-dred  seventeen,  before  me,  a  notary  public  in  and  for 
said  county,  personally  appeared  William  Lemke,  F.  B.  Wood, 
and  L.  L.  (Iriffith  known  to  me  to  be  the  persons  who  are 


ITS   mKTH.   ACTIVITIES   AM)   LEADERS        61 

described  in  and  who  executed  the  within  instrument,  and 
they  each  duly  acknowledged  to  me  that  they  executed  the 
same. 

IN  WITNESS,   I   have   hereunto    set    my   hand   and   affixed 
my  official  seal  the  day  and  year  last  above  written. 
(SEAL) 

J.  D.  Hoogesteger, 

Notary  Public. 
Ramsey  County,  Mimi. 
My    ('omrnission    expires    "t-lN-22. 


The  part  of  this  bill  which  fastened  the  MONOPO- 
LY OF  THE  NEWSPAPERS  UPON  THE  PEOPLE 
OF  XOUTIl  DAK.TA.  is  that  part  of  Section  4.  which 
says  that  the  COMMISSION  OF  PUBLIC  PRINTING 
I  FAS  THE  POWER  TO  DESK?  NATE  A  NEWSPA- 
PER JN  EVEHV  CQUMTt  IN  THE  STATE  IN 
WHICH  THE  LEOAL  PUBLICATIONS  MUST  BE 
MADE.  The  object  of  this  provision  was  four  fold: 

1  It  took  away  a  great  source  of  revenue  from  the 
independent  newspapers  in  this  state.  All  legal  notices 
had  to  he  published  in  the  designated  paper. 

'2.  liefore  this  hill  was  passed  the  socialist  leaders 
had  had  their  confidential  man  -I.  W.  Brinton  going 
from  county  to  county  securing  options  011  newspapers, 
already  running  or  establishing  new  ones.  The  papers 
so  established  having  preferred  and  common  stock,  the 
-ommon  stock  being  controlled  by  the  Publishers  Na- 
tional Service  Bureau  of  which  F.  B.  "Wood,  Vice 
President  of  the  League,  is  the  Superintendent.  The 
farmers,  of  course,  pay  for  the  preferred  stock,  while 
the  socialist  leaders  through  the  common  stock,  con- 
irol  the  editorial  policy  of  the  newspaper. 

•'{.  This  paper  being  the  only  one  in  which  legal 
notices  wer*  published  for  the  next  eighteen  months, 
then  it  necessarily  followed  that  any  citi/en  in  the 
county  who  wished  to  know  what,  the  county  oft'icials 
were  doing  had  to  subscribe  for  th<>  newspaper,  and 


62  THE  NONP ARTISAN  LEAGUE 

this  gave  the  league  leaders  a  greater  circulation  for 
their  sheets. 

4.  These  papers  as  Mr.  Brinton  himself  stated  would 
give  the  Socialist  leaders  power  to  ruin  any  man  who 
opposed  them. 

With  papers  in  practically  every  county  in  the  state 
they  can  any  morning  they  choosle,  brand  their  oppon- 
ent, no  matter  how  honest  he  may  be,  as  a  crook,  and 
the  opponent  has  no  way  of  presenting  his  case  to  the 
people,  unless  he  buys  space  in  other  newspapers,  the 
cost  of  which  is  of  course  prohibitive. 

This  law  gives  the  socialist  leaders  the  power  to  say 
to  the  Governor — "Mr.  Governor  you  will  either  sign 
the  bill,  which  the  legislature  passed  or  we  will  brand 
you  all  over  the  state  as  a  traitor  of  the  farmers. " 

Insurance  Commissioner,  S.  A.  Olsness,  for  instance, 
became  so  thoroughly  disgusted  with  the  socialist 
leaders  that  he  called  some  of  the  state  officials  to  his 
office  to  formulate  a  protest.  We  left  his  office  and  the 
next  thing  we  knew  Olsness  got  "cold  feet,"  and  was 
afraid  of  publicity,  and  has  been  a  good  little  follow- 
er of  the  Socialist  leaders  ever  since,  being  so  good  in 
fact  that  they  have  favored  him  by  putting  him  on 
some  of  the  Boards. 

To  give  the  public  some  idea  as  to  how  thoroughly 
they  control  these  newspapers,  I  have  set  forth  the 
articles  of  incorporation  of  the  Grand  Fork  American, 
published  at  Grand  Porks.  This  newspaper  cost  the 
farmers  nearly  $100,000.00  cash,  and  any  one  \\  he- 
reads  the  articles  can  see  who  controls  it. 

Section  5  of  the  Articles  of  Incorporation  readilv 
shows  how  five  hundred  SHARES  OF  THE  COMMON 
STOCK  AT  THE  PAR  VALUE  OF  TWO  DOLLARS 
per  share,  given  for  services  rendered  or  to  be  render- 
ed, GIVES  A  SOLID  BLOCK  OF  STOCK  TO  THE 


ITS   BIRTH.  ACTIVITIES  AM)  LKADKRS        63 

SOCIALIST  LKADKRS,  cither  directly  or  indirectly. 

Whereas  the  nine  hundred  and  ninety  shares  of  per- 
ferred  stock  scattered  all  over  the  northwestern  uart 
of  the  state,  with  the  result  that  when  it  comes  to  a  meet- 
ing Of  the  stock  holders  the  five  hundred  shares  have 
control, 

There  is  hardly  a  man  living  in  North  Dakota,  no 
matter  how  honest,  square  and  up  right  he  may  be, 
who  can  withstand  attacks  from,  the  socialist  crew  with 
Their  large  "'an?  of  newspapers,  back  of  which  is  the? 
money  derived  from  tliec  ounty  printing  in  nearly  every 
county  in  the  state.  In  addition  to  that  they  have  the 
enormous  amount  of  money  collected  in  the  organiza- 
tion of  the  United  Consumers  Stores  Company,  ninety 
per  rent  of  which  they  can  use  for  ''educational  pur- 
j>oses.v<  -I.  AY.  Brinton  whom  they  are  now  seeking 
to  disci-edit  testified  that  he  alone  collected  one  mil- 
lion and  one  hundred  thousand  dollars  from  farmers 
in  the.  Consumers  United  Stores  Company,  and  time  and 
time  again  I  have  heard  Townley  ridicule  the  farmers 
for  being  ••damn  fools'-  enough  to  pay  $100.00  for  the 
priviled.iz'e  of  trading  ;it  a  store  they  paid  for. 

This  is  the  kind  of  an  outfit  which  is  in  control  of  the 
state  of  North  Dakota,  posing  as  farmers  friends,  when 
as  a  matter  of  fact  they  are  their     enemies.     For    in- 
stance  every   drought    stricken   farmer   in   the   Avesteru 
part  of  North    Dakota   knows  that   one  of  the  greatest 
boons  to  North   Dakota  has  been  the  Federal  Loan  Act, 
fought    for  so  courageously   by    United    States   Senator 
A.  .1.  (iroinia.      At  the  very  time  when  Senator  (Jroim* 
was.workin.ir  day  and  ni.u'ht  to  s.-cnre  the  'Federal  Farm 
Loan    Act.  which  Avould  enable  the   United   States  Gov- 
'•niment  to  loan  money  to  the  farmers  of  North  Dakota 
at    five  or  five  and  a  half  per  cent,  it   was  fought  in  the 
Xorth  Dakota  Leader  by  Townley  and  his  socialist  out- 
fit.     In  spite  of  their  opposition  it   became  a  law,  and 


64  THE  NONPARTISAN  LEAGUE 

because  it  passed,  millions  upon  millions  of  dollars  lias 
been  loaned  to  North  Dakota  farmers.  Many  a  man 
was  able  to  save  his  land  from  mortgage  foreclosure, 
simply  because  of  that  law. 

What  happened  next? 

The  legislature  passed  a  'law  at  the  special  session 
of  the  legislature  ostensibly  to  help  the  farmer,  which 
is  known  as  "the  Seed  and  Feed  Act"  and  in  spite  of 
the  farnings  of  the  men  friendly  to  the  farmers  move- 
ment, the  socialist  leaders  had  the  law  so  worded  that 
the  county  got  a  first  lien  upon  the  land  of  the  farmer, 
who  purchased  the  seed,  with  the  result  that  the  Fed- 
eral Farm  Loan  Board  refused  to  make  any  more  loans 
of  federal  money  in  North  Dakota.  Immediately  hun- 
dreds of  farmers  of  North  Dakota  were  left  high  and 
dry.  Their  loans  had  been  approved  by  the  Federal 
authorities  and  they  were  depending  upon  the  money, 
and  numerous  bankers  had  advanced  money  to 
farmers  relying  upon  those  federal  loans. 

Farmers  telephoned  in  from  different  parts  of  the 
state  urging  that  something  be  done  to  get  those  six 
million  dollars  of  federal  money  which  was  being  held 
up  by  the  seed  and  feed  act. 

Then  the  socialist  leaders  suddenly  realized  that  in 
their  opposition  to  the  Federal  Farm  Loan  Act  tiny 
had  over  played  their  hand. 

They  frightened  at  the  situation,  urged  me  to  do 
what  I  could  to  save  the  situation,  after  Frazier  re- 
ceived the  following  telegram  from  William  G.  McAduo 

March  25,  1913 
Hon  Lynn  J.  Frazier,  Bismarck,  North  Dakota. 

Am  in  receipt  of  your  telegram  as  well  as  telegrams 
from  farmers,  bankers,  and  organizations  in  your  State 
As  you  know,  the  Federal  Loan  Banks  are  required  by 
Act  of  Congress  to  lend  money  on  first  mortgages  only. 
The  enactment  of  your  seed  and  feed  law  with  the  un- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      65 

usual  provision  ilia!  loans  made  thereunder  should 
have  priority  of  lien  over  mortgages  previously  record- 
ed raises  serious  questions,  both  of  law  and  of  the  se- 
curity of  loans  made  by  the  federal  Land  Bank  under 
the  Act  of  Congress.  I  have  referred  the  question  to 
the  Attorney -General  of  the  United  States  for  his  opin- 
ion. If  lie  should  hold  that  your  seed  and  feed  law  is 
a  prior  lient  to  farm  mortgages  made  to  Federal  Land 
Jiauks,  then  it  will  be  impossible  for  the  Federal  Land 
Banks  to  loan  on  mortgages  in  North  Dakota.  Your 
only  remedy  in  that  ease  will  be  to  make  the  seed  and 
feed  law  liens  subordinate  to  the  liens  of  farm  mort- 
'j-a  LTCS  to  Federal  Land  Banks  .  As  soon  as  the  At- 
torney General  of  1he  United  States  renders  his  opin- 
ion, I  will  communicate  it  to  you.  Will  you  please  let 
the  people  of  Xortk  Dakota  know  that  the  officers  of 
the  Federal  Land  Bank  of  St.  Paul  and  my  colleagues 
of  the  Farm  Loan  Board  and  myself  deeply  sympathize 
with  the  People  of  North  Dakota  in  the  predicament, 
in  which  they  find  themselves  because  of  the  prior  lien 
<riven  under  the  seed  and  feed  law  and  that  we  are 
sincerely  desirous  of  doing  everything  in  our  power  to 
relieve  them.  Jt  is  impossible,  however,  for  the  Farm 
Loan  Board  or  the  Farm  Loan  Banks  or  myself  to  do 
anything  in  this  collection  if  the  Attorney  General  of 
the  United  States  should  hold  that  the  lien  of  the  seed 
and  feed  law  is  paramount  to  that  of  farm  mortgages 
to  Federal  Land  Kanks. 

W.  G.  McAdo,,. 

I  went  to  Washington,  1).  C.,  taking'  with  me  Assist- 
ant 'Attorney  (i  en  era  I  I).  V.  Brennan.  Congressman 
John  liner,  slated  that  nothing  could  be  done,  the  case 
was  hopeless.  John  Thompson,  one  of  the  socialist 
leaders  down  there  stated  that  hed  seen  Vance  Mc- 
Cormiek,  at  that  time  a  leader  of  the  Democratic  Na- 
tional <  'ominitto'.  and  that  nothing  could  be  done. 


rifi  THE    NONPARTISAN 

.lolm  Baer  said  that  In*  had  seen  Herbert   i^uic.k  of  the 
Farm  Loan  hoard  ami  that  nothing  eould  he  done.  For 
three  weeks  I  stayed  there.       Chairman  of  the  Farm 
Loan  hoard,  Mr.  Norris,  was  interested.  Congressman 
P.   ]).    Norton    one    of   the    best    Congressmen    that   we 
have  ever  had   in  Congress  worked  day  and  night,  to 
-vt    me  an   interview  with  "Win.  <!.   MeAdoo,  Secretary 
of   the   Treasury.    I    enlisted    the   hoary    invaluable   aid 
of  Robert   A.  Taft.  son  of  the  former  president,  who  in 
turn  enlisted  the  aid  of  Secretary  of  Agriculture-  Mr. 
Houston,  and   finally  the  Farm  Loan    Board  made  the 
concession  that  if  the  farmers  borrowing  the  money 
would   put   up  a  bond  guaranteeing  that  the  seed  and 
loans  would   be  made  and  finally  that    my   request   for 
the  continuance  of  the  loans  would  bo  granted.  Burro. II 
<i.   White  of  Baltimore  furnished  a  bond  that   cost   the 
farmers    one    fourth    of   one    percent    more    in    interest 
rates,   in   order  to  pay  for  the  bond.     The  six   million 
dollars  of  loans  had  been  saved  to  the  farmers  of  North 
Dakota,  saved   larjroly  through  the  work  of  Con  <r  res.- 
man   1*.  I).  Norton,  his  brother-in-law.  Assistant   Attor- 
ney (ionoral   I).  V.   Bronnan  and  the  splendid  co-opera- 
tion  of  Mm.  McAddo  and  his  board  and  Mr.  Burrell 
<J.  AVhite,  BUT  WERE  THE  SOCrALTST   LEADERS 
GRATEFUL! 
No. 

Although  Dan  \".  Brennan  died  from  the  effects  of 
that  trip,  before  lie  eould  return  to  Bismarck,  dying 
in  St.  Paul,  yet  the  socialist  leaders  had  sent  word  that 
i  'onjrressma-n  Norton,  and  his  brother-in-law  must  not. 
be  re-endorsed,  and  Norton  who  did  as  much  as  any- 
one else  to  got  this  money  for  the  farmers  was  defeat- 
ed at  the  Primary  elections.  HE  ALSO  HAD  REFUS- 
ED TO  TAKE  THEIR  ORDERS  AND  WAS  CRUCI- 
FIED BY  THE  HATE  OF  THE  SOCIALIST  LEAD- 
ERS. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       67 
CHAPTER'  VI 

SOCIALISTS  AS  BANKING  EXPERTS 

Along  in  February  of  last  year,  it  was  brought  to 
my  attention  that  J.  J.  Hastings  and  Thomas  Allen  Box, 
two  men  working  with  Townley,  were  organizing  a 
bank  in  Valley  City.  These  men  had  previous  to  this 
time  organized  banks  in  Hillsboro,  Hatton,  Grand 
Forks,  Knox,  Casselton,  Leith,  Regent  and  other  places. 
In  addition  to  this,  every  time  a  bank  went  broke  these 
men  were  found  hovering  over  the  town  that  had  had 
the  misfortune,  like  vultures  over  a  carcass. 

When  word  came  to  me  that  a  bank  with  a  capital 
of  two  hundred  thousand  dollars  was  being  organized 
in  Valley  City,  I  decided  to  investigate  it. 

The  records  show  that  this  outfit  organized  the  Am- 
erican Exchange  Bank  of  Valley  City  under  the  name 
of  the  Federal  Development  Company.  By  this  method 
HASTINGS  AND  BOX,  AND  THE  MEN  THEY 
REPRESENTED,  ESC1  APED  ALL  PERSONAL  LIA- 
BILITY. 

The   Farmers  Were   Fooled. 

It  was  represented  to  the  farmers  as  shown  by  the 
sworn  testimony  given  by  William  Olson,  their  Presi- 
dent, before  the  State  Banking  Board,  that  the 
State  Bank  of  North  Dakota  was  being  cre- 
ated by  the  legislature  with  a  capital  of  two 
million  dollars;  that  every  school  treasurer,  village 
treasurer,  town  or  township  treasurer,  city  treasur- 
er, county  treasurer,  and  the  Treasurer  of  North  Dako- 
ta, would  be  obliged  to  put  the  public  money  into  the 
Bank  of  North  Dakota,  and  that  this  money  would  draw 
a  low  rate  of  interest  (it  is  actually  from  two  to  four 
percent);  that  the  organizers  had  a  "stand-in''  with 


G8  THE   NONPABTISAN   J/KAiiTK 

th«'   MINI  who  would  run  the  Bank  of  North  Dakota 
whereby  money    would    be    taken    out    of  the     Bank 
of  North  Dakota  and  deposited  in  the  banks  manipulat- 
ed by  Hastings,  Box  and  their  associates,  and  that  they 
in  turn  could  loan     this    money  out     to  the     farmers 
around  the  country  at  higher  interest  rates. 
$20,000.00  For  a  Few  Days'  Work 
The  stock  in  the  Valley  City  Bank  sold  like  hot  cakes. 
In  a  few  days  the  1\vo  hundred  thousand  dollars  worth 
of  stock   was   subscribed   for   and   likely   the   farmers 
thought  that  they  had  control  of  the  bank— but  they 
didn't"  for  Hastings  stated  that  it  was  also  arranged 
lull  Townley,  through  his  puppets  and  tools,  would  con- 
trol  fifty-one  percent   of  it— that   "TOWNLEY  HAD 
SKXT  HIM   TO  LOOK  OUT  FOR  THAT."  Hastings 
and  Box,  and  the  men  they  represented,  charged  the 
fanners  ton  percent  of  the  two  hundred  thousand  dol- 
lars for  the  organization  of  the  bank,  or  twenty  thou- 
sand dollars  for  about  one   week's  actual  work.     This 
they  had  a  LEGAL  right  to  do. 

On  February  loth,  a  deputy  bank  examiner  in  Mr. 
"Water's  office  made  a  report  to  the  Banking  Board 
that  the  new  bank  had  complied  with  the  law,  that  they 
had  a*  charter  and  that  all  was  satisfactory  to  Mr. 
AYaters  in  the  amalgamation  of  the  new  State  Bank 
with  a  national  bank  at  Valley  City. 

Mr.  Hall  and  I  were  suspicious  and  as  majority  mem- 
bers of  the  Banking  Board,  instead  of  granting  per- 
mission for  the  consolidation  insisted  upon  Mr.  Olson 
testifying,  under  oath,  before  the  State  Backing  Board. 
Mr.  Olson,  -after  being  sworn,  testified  .that  although 
he  was  president  of  the  bank  that  he  knew  nothing  at 
all  about  the  deal,  that  he  did  not  know  how  much 
they  had  paid  for  the  national  bank  which  the  Ameri- 
can Exchange  Bank  had  bought  out,  and  he  showed  an 
absolute  ignorance  of  the  transaction  which  was  alarm- 


ITS,  BIRTH,  ACTIVITIES  AX!)  LKARKRS      69 

ing.  All  he  could  tell  was  that  the  Consumers  United 
Stores  Company,  a  Townley  concern,  was  "  mixed 
up"  in  it  some  wy;  that  he  had  a  fifteen  thousand 
•dollar  house  on  his  hands,  and  that  the  farmers  had 
been  "stuck"  for  twenty  thousand  dollars  commis- 
sion. 

Hastings  and  Box  Come  Back 

On  my  demand,  Hastings  and  Box  who  were  on  their 
way  to  Florida  for  the  United  States  Sisal  Trust,  also 
a  Townley  concern,  were  headed  off  at  Minneapolis 
arid  asked  to  appear  before  the  Banking  Board.  In 
,  the  meantime,  Mr.  P.  E.  Halldorson,  the  oldest  deputy 
Examiner  in  point  of  service  to  the  State,  was  sent 
to  Valley  City  to  examine  the  outfit.  Mr.  Halldorson 
made  his  report  to  the  Banking1  Board  on  February  18th 
1919,  and  it  showed  that  there  was  a  $15,026.91  graft 
in  the  deal  besides  the  $20,000.00  commission,  and  that 
in  addition  they  had  instead  of  $36,375.00  in  cash,  the 
following  notes  which  were  considered  either  poor  or 
no  good : ' 

Federal    Development   Company $6,750.00 

Thomas  Allen  Box 1,250.00 

United  Consumers  Stores  Co 9,375.00 

J.  J.  Hastings  9,375.00 

Hastings,  Box  £  Olson  note 9,625.00 


$36,375.00 
The  Loot  Recovered 

Mr.  Hall  and  I  immediately  demanded  that  these 
notes  be  secured  by  good  signatures  with  the  result  that 
on  February  21st,  a  telegram  was  sent  by  William  Olson 
from  V alley  City,  stating  that  Thomas  Allen  Box'  note 
had  IMM-M  paid.  The  Federal  Development  Company's 
note  reduced  and  the  balance  secured,  the  Consumers 
United  Stores  Company  and  Hasting 's  paper  secured, 
that  it  all  would  be  reduced  in  a  few  days.  THE 


70  THE  NONPARTISAN  LEAGUE 

FARMERS  WERE  THUS  PROTECTED  TO  THE  EX- 
TENT OF  $36,375.00. 

The  majority  members  of  the  Banking  Board,  over 
Frazier's  objection,  insisted  that  before  the  state  bank 
be  allowed  to  take  over  the  national  bank  that  the 
way  in  which  it  was  purchased  be  investigated.  The 
report  of  Deputy  Examiner  Halldorson  shows  that  on 
February   13th,    1919,    a   committee   representing    the 
farmers  consisting  of  J.  J.  Hastings,  Willian  Olson  and 
Louis  Noltimier  went  to  the  American  National  Bank 
with  full  power  to  buy  out  the  American  National 
Bank ;  that  later  a  contract  was  made  by  the  American 
National  Bank,  by  its  president,  James  Grady,  and  its 
cashier,  H.  C.  Aamoth,  parties  of  the  first  part,  and  by 
the  American  Exchange  Bank,  by  J.  J.  Hastings,  Will- 
iam Olson  and  Louis  Noltimeier,  as  parties  of  the  second 
part,  wherein  it  was  provided  in  substance  that  $146,- 
050.00  be  paid  for  the  national  bank.     This  contract 
was  signed  in  triplicate. 

Mr.  Aamoth,  who  was  the.  cashier  of  the  American 
National  Bank,  showed  Deputy  Bank  Examiner  Hall- 
•dorson  the  minute  book  of  the  National  Bank,  which 
showed  that  five  hundred  shares  of  stock  in  said  Na- 
tional Bank  were  represented  by  J.  J.  Hastings. 
Thomas  Allen  Box  and  William  Olson,  and  that  they 
appeared  to  be  the  owning  and  controlling  interest  in 
the  American  National  Bank. 

The  farmers,  however,  when  they  got  the  bank,  were 
kept  in  ignorance  of  the  fact  that  $146,050.00  was  the 
amount  the  contract  called  for  and  instead  they  were 
charged  $162,033.61.  In  other  words,  the  stockholders 
of  the  National  Bank  were  paid  $146,050.00  plus  an 
item  of  interest  amounting  to  $856.70,  or  $147,906.79, 
and  the  farmers  actually  paid  $15,026.91  too  much, 
THIS  SUM  BEING  IN  THE  NATURE  OF  A  "RAKE 
OFF"  MADE  BY  THE  FARMERS  FRIENDS". 


ITS  BIRTH,  ACTIVITIES  AND   LEADERS       7i 

$15,026.91  Paid  Back 

Mr.  Hall  and  I  both  stated  that  under  no  condition 
would  \ve  let  tlie  State  I>ank  take  over  the  National 
Bank  unless  this  {jvl5,02(>.91  was  returned,  and  on  March 
1st,  1919,  the  sum  of  j|?ir),()k2(>.91  was  paid  hack  to  the 
farmers  of  Barnes  County  by  Hastings  and  his  partners. 
HERE  IS  A  COPY  OK  THE  REPORT  SHOWING 
THE  LOOT  KE1N<;  PAH)  BACK: 

THE    RESTITUTION 

On  March  1-t,  1919,  J.  J.  Hastings  paid  to  the  Bank  $5,170.90 
it  was  paid  by  a  check  signed  by  Fed.  Development  Co.  on  the 
American  Exchange  Bank  and  at  that  time  credited  to  the 
•profits  of  the  Bank. 

On  March  25th,  a  further  payment  of  $9.856.01  was  made 
by  Mr.  Hastings  as  follows: 

By  Check  of  Fed.  Development  Co.  on  this  Bank  $1160.77 
By  Check  of  Fed  Development  on  People  St..  Casselton  1500.00 
By  William  Olson  to  Hastings  on  Scand.  Am.  Fargo  2141.&3 
By  Check  William  Olson  on  this  bank  428.31 

By  note  of  J.  Jv  Hastings  for  60  days  4625.00 


Total  ,  $9,856.01 

Plus    payment    made   Match    1st  f>,170.90 

Total  restitution  $15,026.91 

Will  state  that  I  had  the  Cashier  ascertain  that  the  above 
outside  checks  will  be  honored.  Regarding  checks  on  this 
Bank  there  we-re  sufficient  fund?  to  take  care  of  them  in 
each  case.  The  Note  given  is  secured  by  37  shares  of  stock 
in  the  Merchants  National  Bank,  at  Wimbelton.  This  secur- 
ity leaves  no  margin  as  the  actual  value  of  the  stock  i* 
atoout  the  same  as  the  face  of  the  note-. 

1  wish  to  state  further  that,  this  note  is  not  shown  in 
schedule  of  liabilities  of  officers  and  directors  elsewhere  in, 
this  .report,  as  same  was  put  in  subsequent  to  the  date  of  the 
statement  on. which  this  report  is  based. 

In  conclusion  1  will  state  that  I  feel  satisfied  that  the  $15,- 
026.91  item  constitutes  whole  amount  of  money  improperly 
appropriated  in  connection  with  the  transfer  of  the  assets, 
and  a  cash  restitution  of  $10. tin. 91  ha-s  been  made,  and  the 
balance  by  note  which  Intter  should  be  liquidated  by  cash. 
I  feel  if  this  is  done  and  Hastings  connection  permanently 
severed  and  his  influence  on  the  Bank  'permanently  removed, 
together  with  such  requirement*  carried  out  as  the  Banking 
Hoard  -shall  see  fit  to  impose  regard  the  stock  notes,  that  the 
Bank  is  entitled  to  be  parsed.  In  any  event  an  early  action 
should  be  taken  looking  towards  rejection  or  admission,  art 


72       THE  NONP ARTISAN  LEAGUE 

further  delay  is  proving  very  detrimental  to  the  busine«s  o? 

institutions  in  the  state." 

Respectfully   submitted, 
P.  E.  Halldorson, 

Deputy   State   Examiner 
FRAZIER   SUPPORTED   LOOTERS 
When  this  matter  came  up  Governor  Frazier  did 
his  best  for  his  masters  and  stated  that  we  were  trying 
to  hurt  the  farmers  organization.  I  then  introduced 
the  following  resolution,  which  was  seconded  by  Mr. 
Hall  and  carried,  on  roll  call  Mr.  Hall  and  myself  vot- 
ing "Aye"  and  Mr.  Frazier  voting  "No." 

THAT  ALL  PAPERS  OF  EVERY  NATURE,  ALL 
LETTERS,     ALL     STATEMENTS     OF     THE 
BANK  BEFORE   OR  AFTER   THE   APPLICA- 
TION, THE  TESTIMONY  GIVEN  BY  MR.  WM 
OLSON  AND  J.  J.  HASTINGS,  ALL  COPIES  OF 
MOTIONS     MADE,  ALL     COPIES     OF  TELE- 
GRAMS OR  ANYTHING  ELSE  WHATSOEVER 
IN  CONNECTION  WITH  THE  AMERICAN  EX- 
CHANGE STATE  BANK    OF  VALLEY     CITY 
BE  THROWN    OPEN     TO  THE     PEOPLE  OF 
NORTH  DAKOTA,  OR  TO  ANY  PERSON  WHO 
WISHES  TO  SEE  THE  SAME. 
After  this  I  made  the  following  motion  which  was 
seconded  by  Mr.  Hall  and  carried,  on  roll  call  Mr.  Hall 
and  Mr.  Langer  voting  "Aye"  and  Mr.  Frazier  voting 
"No". 

"THAT  IF  AT  ANY  TIME  ANY  BANK  OFFI- 
CERS, STOCKHOLDERS,  PROMOTERS  OF 
BANKS,  OR  ANY  PERSONS  CONNECTED 
WITH  ANY  OF  THE  STATE  BANKS  IN  NORTH 
DAKOTA  MAKE  ANY  EXORBITANT  PROFITS 
HIDE  ANY  ACCOUNTS  OR  CHECKS  OR  DO 
ANY  ACT  TO  BRING  BANKING  INTO  DIS- 
REPUTE OR  WHICH  TENDS  TOWARD  WILD- 
CATTING,  OR  ORGANIZING  THE  FARMERS 
TO  BUY  OUT  A  BANK,  PROMOTE  OR  ORGAN- 


ITS  BIRTH.  ACTIVITIES  AND  LEADERS  73 
IZE  OR  BUY  OUT  EITHER  A  NATIONAL  OR 
STATE  BANK  AND  CONSOLIDATE  THE  SAME 
WITH  ANOTHER  BANK,  IN  ANT  INVESTIGA- 
TION IN  ANY  TRANSACTION  ABOVE  NAMED 
THE  BOOKS  OF  THE  SECRETARY  SHOW- 
ING THE  SAME  SHALL  BE  OPEN  TO 
THE  PUBLIC  AND  THE  MOST  POSSIBLE  PUB- 
LICITY BE  INVITED." 

Who,  tell  us,  who  was  afraid  of  letting  the  farmers 
know  the  truth  about  what  was  going  on? 

Wny,  I  say,  shouldn't  the  public  read  Cashier 
Amoih's  testimony,  given  under  oath,  that  Box  came 
to  him  several  times  to  get  him  to  CHANGE  THE 
f  'ONTRACT  so  that  the  contract  would  call  for  $162,- 
033.01  instead  of  $147,906.70— and  now  when  he  told 
Box  that  he,  Box,  and  Hastings  were  already  making 
$20,000  out  of  the  farmers,  and  that  that  should  sat- 
isfy them,  how  Box  replying  said  "Well,  Mr.  Rmoth, 
Mr.  Hastings  and  I  are  not  making  as  much  as  you 
think  we  are — after  William  Olson  gets  his  share,  the 
bala;-re  is  divided  into  four  parts — Hastings  and  I  get 
half  -iid  Mr.  Townley  and  Mr.  Lemke  get  the  .other 
half 

!.'•  hat  Mr.  Amoth  swore  to  was  not  the  truth 
WHY  DIDN'T  THEY  ARREST  HIM  FOR  PURJ- 
ING! 

T=  -nicy  however  was  ''scared"— he  telephoned  for 
Wai-'-s.  the  bank  examiner,  who  left  for  Fargo  on  the 
nexl  train — at  F  iriro  Townley,  Waters,  Lemke,  Hast- 
ings :»nd  a  man  by  the  name  of  Miller  had  a  midnight 
fonfi-rence  and  on  February  23,  1919,  Mr.  Waters  made 
thf  fallowing  statement  in  the  Courier  News  over  his 
signature : 

NOTHING    WRONG    AT   VA'LLEY  CITY,    EXAMINER    SAYS 

Secretary  of  Banking  Board  says  forty  other  banks  have 

had  to  meet  stiff  requirements  of  law. 

J,  R.  Waters,  Secretary  of  the  State  Banking  Board  and 

;:  Examiner,  who  reached  Fargo  early  this  morning,  was 


74  THE  NONPARTISAN  LKACTK 

asked  for  a  statement  regarding  the  story  carried  in  the  Far 
go  Evening  ipaper  to  the  effect  that  League  men  had  cleaned 
up  $57,000  on  a  Valley  City  bank  deal,  Mr.  Waters  said: 

"The  Forum,  as  usual,  is  attempting  to  cast  reflection  on 
the  farmers'  organization,  and  the  men  connected  with  it.  by 
publishing  false  and  misleading  articles  for  which  there  is  no 
foundation. 

"A  Valley  City  National  Bank  is  re-organizing  under  North 
Dakota  law  to  become  a  state  bank.  And  as  is  usual,  the  en- 
tire assests  of  the  bank  must  be  passed  upon  before  a  state 
charter  is  granted.  Because  of  our  guarantee  law,  our  exam- 
ination is  more  severe  than  that  required  under  national 
banks.  Because  we  asked  for  additional  securities  and  de- 
manded some  changes  in  paper  before  granting  the  state  char- 
ter is  no  e-vidence  that  the  men  back  of  the  bank  are  dishonest 
or  thieves." 

STATE   LAW  VERY  SEVERE 

"In  fact,  some  forty  banks  in  North  Dakota  that  had  been 
doing  business  in  the  state  for  years,  had  a  hard  time  getting 
under  the  guarantee  law  bfecruse  of  ur  severe  requirements. 
There  is  nothing  wrong  at  Valley  City  and  the  new  bank^ 
which  is  meeting  our  requirements,  is  one  of  the  strongest 
institutions  in  the  state." 

"The  matter  of  increase  in  the  value  of  the  bank  building 
has  nothing  to  do  with  the  organization  of  the  bank  or  the 
value  of  the  stock,  a-;  the  more  the  building  is  raised,  the 
more  surplus  thebank  will  have.  Th^  deal  there,  as  far  at 
my  knowledge  goes,  is  legitimate,  fair  and  honest,  and  what- 
ever commission  was  paid  for  promotion  was  outside  the  bank 
and  was  stipulated  openly  in  the  transfer  which  every  stock- 
holder knowingly  agre-ed  to  and  paid  at  the  time  of  making 
his  subscription  for  stock. 

"The  story  carried  in  anti-league  papers  seems  to  me  to 
simply  be  a  campaign  to  misrepresent  and  discredit  any  in- 
stitution because  it  is  backe-d  principally  by  farmers  and  men 
connected  with  the  League.  The  public  can  rest  assured  that 
there  will  be  no  wild  cat  banking  nor  bank  promotions  under 
the  present  bankig  board,  or  while  I  have  cnarge  of  the  Kx- 
amier's  office." 

J.  R.  AVat.Ts. 


TOWNLEY  DEFENDS  WATERS  IN  HIS  LIES 
TO  FARMERS 

Mr.  Waters  knew  at  that  time  that  he  issued  the  slate- 
men!  that  lie  was  deliberately  lying-  to  deceive  the 
fanners  of  North  Dakota.  Town  ley,  who  at  that  time 
got  a  hundred  dollars  a  month -for  dictating  the  edit- 
ial  policy  of  the  Courier  News,  as  shown  by  his 
sworn  statements  in  his  bankruptcy  proceedings  before 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      75 

Judge  Ainidon,  knew  all  about  the  deal  that  Hastings 
and  his  partners  put  over  and  yet  for  weeks,  the  Cour- 
ier News  editorially  defended  Hastings  and  Box,  say- 
ing that  what  they  took  was  not  too  much. 

Townley  and  Lemke  and  the  rest  of  the  League  offi- 
cials not  ONLY  BACKED  UP  WATERS  BUT  GOT 
GOVERNOR  FRAZIER  AND  JOHN  HAGEN  TO  AP- 
POINT WATERS  AS  MANAGER  OP  THE  BANK  OF 
NORTH  DAKOTA  IN  SPITE  OF  MY  PROTESTS  AND 
AGAINST  MY  RECORDED  VOTE  IN  THE  MINUTES 
OF  THE  INDUSTRIAL  COMMISSION  PROCEED- 


\'  reply  to  my  protests,  Governor  Frazier  made  only 
OIK-  remark™the  matter  having  evidently  been  fixed 
before,  between  himself  and  Hagaii,  he  said,  "We  have 
.irot  to  have  a  man  to  manage  the  State  Bank  of  North 
Dakota  who  is  "right". 

Needless  to  say  a  lot  of  us  inside  theLeague  organiz- 
ation, who  wanted  to  see  the  affairs  of  the  state  ably 
administered,  rebelled  against  the  appointment  of 
Waters,  but  Townley  told  the  League  organizers  in 
Farirn  that  there  was  one  man  in  Bismarck  in  whom  he 
rout-!  absolutely  depend,  and  that  that  man  was  J.  R. 
Wat.-rs.  THE  QOVBBNOE  TWICE  REFUSED  TO 
A('<  KPT  WATER'S  RESIGNATION  AS  BANK  EX- 
AMI  NEK  KNOWING  THAT  HE  WAS  ABSOLUTELY 
KSSKXTIAL  TO  THE  SUCCESS  OF  THE  MACHINE. 
H»'  »  vidently  was,  as  you  will  note  from  what  happen- 
••<l  a  few  months  Inter  in  the  Scandinavian  American 
Bank  deal  at  Fargo. 

The  uses  to  which  the  Socialists  placed  Mr.  Waters 
were  many.  The  records  show  that  the}*  used  him  in 
the  various  newspaper  deals,  in  the  H.  T.  Haggerty 
Company  Inc.,  of  Minneapolis,  in  the  U.  S.  Sisal  Trust, 
but  no  where  during  Mr.  Waters'  term  of  office  did 
lie  j-'-tider  more  valuable  service  to  his  masters,  Town- 


76  THE  NONPART1SAN  LEAGUK 

ley  and  Lemke,  or  to  Governor  Frazier  who  at  the 
Socialists'  request  appointed  him,  than  he  did  in  the, 
Scandinavian  American  Bank  deal— truly  Townley 
kncw  to  whom  to  telephone  for  aid  when  on  the  night 
of  the  22nd  of  February,  he  commanded  Waters  to 
hurridly  leave  Bismarck  and  come  for  a  midnight  con- 
ference with  Lemke,  Hastings,  Miller  and  himself  at 
Fargo. 

THE  INSOLVENT     SCANDINAVIAN     AMERICAN 

BANK 

Between  the  Valley  City  Bank  deal  and  the  Scand- 
inavian American  Bank  deal  seven     months     elapsed. 
In  February,  Townley  in  the  North    Dakota    Leader, 
stated  that  the  League  was  not  mixed  up  \vith  any 
banks  and  had  nothing  to  do  with  their  organization. 

This  statement  came  out  over  his  signature. 
SCHEMES  FOR  WORKING  THE  FARMER 

For  sometime  after  the  Valley  City  Bank  deal, 
Hastings  and  Box  wore  still  mixed  up  with  the  S 
Trust,  the  Scandinavian  American  Bank  and  other  pro- 
jects like  the  League  Exchange,  the  Publishers  Nation- 
al Service  Bureau,  etc.,  which  Townley  wrongfully  calls 
"farmers'  interests/'  These  are  not  farmers'  inter- 
ests at  all. 

The  Consumers  United  Stores  Company  for  example 
is  a  corporation  which  up  to  lately  at  least  had  nn]y 
$]  0,000  capital.  Little  stock  had  been  issued  and  ' 
had  been  issued  only  to  the  tools  of  Townley,  scar* 
one  of  whom  is  a  farmer.  The  Publishers  National 
Service  Bureau  is  handled  the  same  way.  The  League 
Exchange  is  the  same  kind  of  an  outfit,  with  F.  B. 
Wood,  Vice  President  of  the  League,  at  its  head.  The 
Sisal  Trust,  is  headed  by  J.  R.  Waters,  the  Bank  Exam- 
iner appointed  by  Frazier.  Hagerty  Company,  Inc. 
of  Minneapolis,  is  an  outfit  in  which  Box,  Hastings  and 
Waters  are  supposed  to  be  interested.  Xot 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       77 

these  concerns  is  a  farmer  concern.  They  are  in  the 
hands  of  a  few  men,  most  of  them  unscrupulous  with 
only  one  object  in  life  and  that  is  ''milking  the  farm- 
ers'". 

HOW  THE  GANG  WORKED 

•  The  League  Exchange  mentioned  above,  of  which 
Mr.  Wood  is  president,  had  57  shares  of  stock,  in  the 
Scandinavian  American  Bank.  In  violation  of  all 
banking  principles,  the  very  stock  they  purchased  was 
used  as  security  in  payment  for  the  stock,  which  is 
exactly  THE  SAME  THING  AS  IF  JONES  BOUGHT 
A  COW  FROM  BROWN  AND  THEN,  AS  SECURITY 
TO  BROWN,  LEFT  THE  COW  IN  BROWN'S  POS- 
SESSION TO  FEED,  WITH  JONES  MILKING  IT. 
SCANDINAVIAN  AMERICAN  BANK  VIOLATED 

LAW 

For  a  year  and  a  half  in  violation  of  the  State  Bank- 
ing Laws,  the  Scandinavian  American  Bank  had  been 
engaged  in  wild-catting,  kiting  accounts,  in  making  ex- 
cess loans.  Under  the  State  law  this  bank  could  not 
loan  more  than  $9,000  to  any  concern,  person  or  cor- 
poration. Yet  in  violation  of  this  law,  they  made  the 
following  loans  : 

Consumers    United    Stores    Company $170,000.00 

National  Nonpartisan  League  148.824.26 

League  Exchange  66 J 82.00 

Publishers'    Nat.    Service    Bureau 47,950.00 

II.  (J.  llaoertv  47,088.00 

II.  E.   Knaack  23,000.00 

A.  M.  Grosvenor  (Thomas  Allen  Box  line)     29.426.33 

Porter    Kimball    15,066.57 

United   States  Sisal   Trust  12,000.00 

O.  K.  Hanson  (Director  of  S.  A.  Hank  ....  16,847.89 
P4  R,  Sherman  (Cashier  of  S.  A.  Bank)  ..  12. !»'.'-. :>n 
H.  J.  Hagen  (President  |f  S.  A.  Bank) 


78        THE  NONPARTISAN  LEAGUE 

HOW  TOWNLEY  BORROWED  MONEY 

Tiie  Scandinavian  American  Bank  lias  a  capital  of 
$50,000.00  and  a  surplus  of  $10,000.00,  making  $60,- 
000.00.  Yet  they  loaned  Townley  and  his  associates 
nearly  a  half  million  dollars. .  Townley  and  his  follow- 
ers got  a  bunch  of  boys,  non-residents,  employees  and 
clerks  and  attempted  illegally  to  circumvent  the  law. 
The  correspondence  which  I  have  shows  that  THESE 
SIGNERS  WERE  "DUMMIES"  AND  THAT  TOWN- 
LEY  AND  HIS  ASSOCIATES  GOT  THE  MONEY. 
WATERS  HELPED  BANK  TO  BREAK  THE  LAW 

o  years  ago  a  bank  deposit  guarantee  law  was 
modeled  after  that  of  South  Dakota  and  pssed  for  the 
•  •lion  of  every  man,  woman  and  child  in  the  state 
of  North  Dakota.  The  law  was  passed  by  the  Non- 
partisan  House  and  a  so-called  "old  Gang''  Senate. 
The  law  says  that  when  money  is  deposited  it  must  be 
there  when  it  is  wanted  by  the  depositor.  When  it  is 
riot  there,  the  other  banks  in  the  State  shall  pay  an 
assessment  and  make  good  the  loss.  This  means  that 
ultimately  the  people  pay  the  loss  in  higher  interest 
rat*  s.Three  men  were  appointed  by  Governor  Fra/icron 
the  commission  known  as  the  "Guaranty  Fund  Com- 
minion".  Then  Frazier  could  not  hand  pick  his 
appointees  as  he  can  now  because  at  that  time  he  ha<! 
to  «-hoose  the  three  men  out  of  a  list  of  nine  submitted 
by  the  Xorth  Dakota  Bankers  Association.  The  Com- 
mission is  appointed  to  protect  every  farmer,  school 
leather,  boot  black  or  beggar  in  the  State.  The  secre- 
tary of  the  Commission,  by  law,  is  the  State  Bank  Ex- 
aminer, who  was  .].  R.  Waters,  appointed  by  Frazier. 
When  the  Commission  came  to  examine  the  banks 
around  the  state  for  admission  under  the  new  guaran- 
tee law.  Waters  worked  with  them. 

PLANNED  LAWLESSNESS 
Some  little  time  ago  letters  came  into  my  possess- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      79 

ion  showing  that  J.  R.  Waters  had  deliberately  told 
•-the  Scandinavian  American  Dank  of  Fargo,  through 
one  of  his  deputies  or  clerks,  Roy  M.  Halliday,  how  to 
"put  it  over"  The  Guaranty  Fund  Commission,  how 
to  get  "bad  paper"  past  them.  For  example,  one  of 
these  letters  which  came  into  my  possession  and  reveals 
the  Examining  Department's  protective  work  is  as 

follows  : 


OFFICE    OF    STATE    EXAMINER 
STATE    OF    NORTH    DAKOTA 

Bismarck,   N.   D. 
June  10,  1918 
Mr.  J.  J.  Hastings,  Vice  President. 

Scandinavian  American  Bank, 

Fargo,  N.  D. 
Dear  Mr  Hastings:  — 

Mr.  Waters  submitted  to  an  operation  at  the  hospital  here 
today.  While  the  operation  is  not  serious  yet  he  is  not  very 
well  and  will  be  laid  up  for  a  while.  This  is  the  reason  that 
you  and  Mr.  Semingson  were  not  able  to  get  him  over  the 
phone. 

He  has  asked  me  to  write  you  regarding  the  extra  help  you 
have  at  your  bank  just  now  making  an  examination.  He  has 
been  sick  since  last  Thursday,  or  he  would  have  headed  the 
thing  off.  Being  that  Mr.  Schroegge,  Mr.  Semingson.  and  Mr 
Halldorson  are  there  now  to  make  an  examination  on  behalf 
of  the  commission,  he  does  not  care  to  create  any  animosity 
and  antagonism  over  this  matter  at  this  time,  acd  get  as  good 
a  report  for  them  as  possible,  so  that  they  won't  have  any- 
thing to  hand  the  opposition  parties  over  league  finances  and 
business  methods,  or  criticize  the  amount  of  paiper  carried 
there.  It  appears  quite  evident  that  this  is  a  political  play  for 
thunder.  You  see  the  opposition  parties  are  a  little  short  on 
real  sensaional  thunder,  and  they  are  trying  to  scare  up 
something  for  the  last  act,  and  I  don't  suppose  the  other  barks 
in  Fargo  are-  just  what  you  would  term  "crazy  about  you." 
Mr  Waters  wishes  me  to  advise  that  if  the  examiners  object 
to  any  of  the  paper  carried  there,  you  are  to  tell  them  that 
it 'will  be  removed  at  once.  The  plan  for  taking  care  of  ob- 
jectionable matter  ir  to  shoot  it  cut  to  the  other  league  banks 
— Grand  Forks,  HHlsboro,  Buxton,  Hatton — these  banks  are 
practically  all  new  banks,  and  have  been  passed  by  the  com- 
mission which  will  leave  them  ir  a  position  to  do  this.  They 
would  not  have  anything  that  the  Commission  would  object  to 
just  now.  Anything  that  you  sent  them  could  be  taken  back 
later  if  necessary.  Of  course,  we  don't  want  to  move  any 
more  than  v;  absolutely  necessary,  to  get  by  with  a  clean  re- 
port. Mr.  Waters  is  satisfied  that  with  this  information,  you 


80  THE  NONPARTISAN  LEAGUE 

and  Mr.  Semingson  will  be  able  to  handle  this  matter  satis- 
factorily to  all. 

It  anything  further  develops,  kindly  write  me. 
Very  truly  yours, 

Roy  M.  Halliday 


The  next  day  Halliday  wrote  again. 

OFFICE  OF  STATE  EXAMINER 
STATE  OF  NORTH   DAKOTA 

Bismarck 

June  11,  1918 

J.  R.  Waters,  State  Examiner, 
B.  A.  Thorberg,  Deputy  State  Examiner. 
Mr.  J.  J.  Hastings,  Vice  Pres. 
Scandinavian  American  Bank 
Fargo,  N.  D. 
Dear  Mr.  Hastings:  — 

-In  regard  to  the  position  and  condition  of  the  other  League 
banks  to  take  over  any  excess  paper  which  you  might  have 
on  account  of  the  Guaranty  Fund  Commission,  will  say  that 
all  the  banks  except  Grand  Forks  were  passed  and  this  bank 
is  to  be  examined  before  the  First  of  July  so  it  would  not  do 
to  send  them  anything.  Their  remarks  on  Buxton  were  that 
they  had  too  much  outside  ipaper.  Hatton  and  Hillsboro 
were  very  new  and  were  just  passed.  Lisbon  was  passed  aa 
being  fair. 

Kindly  guide  yourself  accordingly  if  you  have  to  send  any- 
thin? 

M-    Waters  is  better  today. 

Yours   very  truly. 

(Signed)     Roy   M.   Halliday 
FRAZIER  BACKS  WATERS 

After  making  further  investigation  I  was  convinced 
tha:,  Governor  Fra/ier  would  <ro  through  with  Waters. 
Fra..'ii'r  know  that  Waters  was  not  a  fit  man  to  be  the 
Ma.L;;uvr  of  the  Bank  of  North  Dakota  when  he  voted 
to  appoint  him.  But  Townley  wanted  Waters  and 
ho  u<»t  the  job  at  $5,000  per  year. 

'Waters  had  never  run  a  bank  a  day  in  his  life.  Be- 
for-'  ho  oame  to  Beach  where  he  became  a  personal 
friend  of  Townley 's  he  had  run  a  livery  stable  in  Iowa, 
and  at  Beach  he  ran  a  real  estate  office  and  had  a  race 
horse. 

The  Scandinavian  American  Bank  being  "tipped  off'' 

when  an  examination  was  to  take  place,  it  became  ex- 

ceedinprly  difficulty  for  me  to  find  out  what  law  viola- 


ITS  iilKTiL  ACTIVITIES  AND  LEADERS       81 

lions  were  taking  place  there.  The  Cashier  of  the 
Bank  was  a  man  by  the  name  of  P.  R.  Sherman,  who 
was  placed  in  charge  of  the  Scandinavian  American 
Bank  after  being  badly  involved  in  a  bank  at  Duluth. 

I  finally  decided  to  send  my  assistant,  Albert  E. 
Sheets,  Jr.,  down  to  Fargo  and  have  P.  E.  Halldorson, 
deputy  bank  examiner,  join  him  with  any  other  exam- 
iners that  they  would  be  able  to  get  and  make  a 
through  investigation  quietly  and  unostentatiously  of 
the  Scandinavian  American  Bank. 

On  Saturday,  October  4th,  my  assistant  commenced 
his  investigation  with  Deputy  Bank  Examiner  Hall- 
dors*  m.  Mr.  Halldorson  had  made  an  investigation  in 
the  month  of  September,  and  was  thoroughly  familiar 
M'iti  thr  situation  in  the  Bank.  In  April  1918,  an  in- 
vestigation liad  been  made  and  loan  after  loan  was 
urUf.-ed  nut.  In  June  1918,  the  president  of  the  bank 
\\Tof  '  the  Guaranty  Fund  Commission  that  the  paper 
would  IK-  taken  out.  THE  BANK  HAD  BEEN  WARN- 
ED TIME  AM)  TIME  A(JAI\— in  fact,  when  it  was 
again  examined,  after  Seminjrsoii  "had  gotten  the  bank 
pas;  Srhroegjro  and  Halldorson.  they  were  warned 
:lia:  iheir  reserve  was  <ron<\  that  they  had  excess  "loan 
aftiv  excess  loan  and  THAT  THEY  WERE  WORSE 
TIL  X  BROKE.  Waters  himself  when  ordered  by  the 
<Jujr  inty  Fund  Commission  told  him  as  follows: 
"YOU  HAVE  THOUSANDS  LESS  THAN  NO  LE~ 
i, A  UESEKVK  AT  ALL." 

TOWNLEY  PROMISES  PUBLIC  FUNDS 

I.  Sherman,  cashier  of  the  hank,  realized  that  they 
were  broke,  and  in  May  1919,  wrote  to  Townley,calling 
n POT  him  to  make  good  his  promise  of  a  half  million 
.dolors  of  state  funds  in  order  to  save  the  bank  from 
^embarrassment  and  disgrace. "  Here  is  a  copy  of 
•ins  .-tter. 


82  TMK   NONPAKTISAX   l;KA(il'K 

May  26th.    191!» 
Mr.   A.   C.   Townley, 

City. 
Dear  Mr.  Townley: 

Agreeable  with  your  request,  to  inform  you  when  we  were 
In  need  of  funds,  I  desire  to  state,  we  shall  be  called  upon  to 
pay  out  in  the  next  thirty  dayy  about  $100,000.  The  money 
which  we  obtained  from  Duluth  and  Minneapolis,  has  been 
used  up,  and  there  has  been  a  rapid  decrease  in  the  country 
bank  balances.  We  are  running  from  day  to  day  with  very 
close  reserve  and  anticipate  further  withdrawal,  which  will 
necessitate  funds  to  the  extent  of  probably  $200,000  to  $250,- 
000  between  now  and  harvest. 

Mr.  Hagan  tells  me  you  were  to  get  us  $500,000  in  addition 
to  the  State  Deposit  which  we  received,  and  urge  that  you 
give  this  your  immediate  attention  an  dassist  us  promptly. 

We  are  getting  in  funds  from  different  source-s  daily,  but 
some  are  delayed  so  there  are  no  large  amounts  coming  to 
us  at  this  season.  Our  only  source  of  credit  is  the  Bank 
of  Commerce  &  Savings.  Duluth  and  Mercantile  State  Bank. 
Minneapolis,  both  being  small  and  limited  in  capacity  to  ac- 
commodate. We  cannot  expect  a  dollar  of  help  from  larger 
banks  and  we-  cannot  tell  fiyrni  day  to  day  when  our  Reserve 
will  be  wiped  out. 

The  fact  that  we  have  assisted  the  League  and  the  Consum- 
ers United  Stores  Company  to  an  amount  of  $200,000  naturally 
depletes  our  available  that  much.  While-  we  are  glad  to  be  of 
assistance  the  time  has  arrived  when  we  must  have  assist. 
ance  if  we  shall  get  through  the  summer  without  difficulty. 

Awaiting  your  early  consideration  in  this  matter,  and  trust- 
ing that  you  will  give  this  your  earnest  attention,  we  beg  to 
remain, 

Very  truly  yours, 
(Signed)     P.    R.    Sherman. 

Cashier 


Any  newspaper  that  states  that  the  Banking  hoard 
took  this  action  out  of  a  clear  sky  without  warning,  is 
deliberately  Jyin^r  to  the  fanners  of  North  Dakota.  Mr. 
Hall  and  1,  as  majority  members  of  the  State  Banking 
Board,  when  we  realized  the  true  condition,  after  it  had 
been  withheld  from  us  by  Waters.  Townley.  Tialliday 
and  Seininjrson.  would  have  been  jruilty  of  assisting 
in  accepting  deposits  when  the  hank  was  insolvent  and 
would  have  violated  our  oaths  of  office,  and  would 
have  been  as  bad  as  the  crooks  who  deliberately 
violated  every  principal  of  banking,  if  we  had 
failed  to  close  up  the  Bank.  Indeed  if  we  hadn't 


ITS  BERTH,  ACTIVITIES  AND  LEADERS      83 

closed  it,  but  instead  had  conspired  to  keep  it  open  we 
could  have  been  sent  to  the  penitentiary.  Pretty  lucky 
for  me  that  Townley  and  Lemke  have' 'nothing  on  me." 

Conditions  were  much  worse  than  I  had  expected  to 
find  them.  The  furniture  for  instance,  which  was 
shown  on  their  books  as  worth  $20,000.00  could  have 
been  bought  new  for  $6,360.00,  as  shown  by  the  affidav- 
it of  Architect  O  'Shea  of  Fargo. 

FRAZIER'S  EXAMINERS  CONDEMN  BANK 

The  Bank  Examiners  made  two  reports,  one  of  them 
that  the  Bank  was  insolvent  and  that  its  doors  should 
be  closed.  This  report  was  received  by  the  Banking 
Board  before  the  doors  of  the  bank  were  closed.  The 
other  report  was  made  three  days  after  the  doors  were 
closed  and  slated  again  that  the  bank  was  ^HOPE- 
LESSLY i  \SOLYK\T:" 

o,  I  ask.  know  the  real  condition  of  the  bank  after 
thi*  -'xamination  °/  Was  it  the  lying  newspapers  con- 
trol (  <l  by  Townley.  or  the  Deputy  Bank  Examiners 
who  under  their  oaths  of  office  made  the  report.  The 
[)>•;  iv  liank  Examiners  found,  for  instance,  that  thou- 
saii  >  of  dollars  worth  of  collateral  had  disappeared 
HP.'!  vas  not  in  tlie  bank  at  all. 

WHAT  WE  FOUND 

Further    investigation    made    by    the    majority   mem- 
bcr>   of  the   Banking   Board  shows  the  following  facts 
the  Scandinavian   American  Bank: 

1  That  as  early  as  June  1,  1918,  it  had  been  refused 
admission  to  the  protection  of  the  Guaranty  Fund;  that 
the  Guaranty  Commission  ordered  an  examination,  of 
the  Bank,  and  the  Commission  was  represented  through 
one  ..f  its  members,  Mr.  ftchroegge.  Mr.  Schroegge  and 
Mr.  Halldorson  made  as  thorough  an  examination  as 
lay's  "tip  off"  to  the  bank  permitted. 

L'  That  before  the  Scandinavian  American  Bank 
\va>  .idmitted  Waters  at  their  order  wrote  them  a  letter 


84  THE  NONPAETISAN^  LEAGUE 

of  rritieism  with  a  threat  that  drastic  action  w<>ui. 
taken  unless  the  bank  had  the  worthless  notes  removed 
the  bank  promised  that  they  would  remove  them,  but 
xi, me  of  those  very  notes  that  they  promised  to  remove 
in  -June  1918  were  still  there  in  October  1919. 

']  Examinations  of  the  bank  were  made  in  April 
and  September.  Each  time  the  condition  was  found 
to  be  worse ;  for  instance,  a  letter  from  Waters  to 
Hagen,  the  president  whom  the  jury  shortly  after- 
wards convicted,  contains  the  following  paragraph: 

"In  the  matter  of  your  legal  reserve,  the  examiner  shows 
that  you  are  barely  up  to  requirements,  and  in  figuring  the 
reserve,  the  amount  due  to  banks  is  treated  as  a  demand  d»- 
jposit.  According  to  the  banking  laws,  the  reserve  on  hand 
at  all  times,  after  deducting  the  amount  due  to  banks  must. 
be  ten  per  cent  of  the  time  deposits  and  twenty  per  cent  of 
the  demand.  In  figuring  on  this  basis  which  would  be 
STRICTLY  ACCORDING  TO  LAW,  YOU  CAN  READILY  SEtt 
THAT  YOUR  RESERVE  WOULD  BE  MADE  THOUSANDS 
OF  DOLLARS  LESS  THAN  NO  RESERVE.  IT  IS  Mv 
OPINION  THAT  YOUR  BANK  WITH  ITS  PRESENT  LINE 
OP  DEPOSITS  SHOULD  CARRY  IN  RESERVE  AT  ALL 
,  TIMES  AT  LEAST  $400,000.00. 

WATERS  SAID  BANK  WAS  INSOLVENT 

This  letter  of  criticism  signed  by  \V;iters  himself 
shows  on  its  face  that  the  Bank  at  that  time  was  insol- 
vent and  constituted  a  tcriffic  menace  that  might  wip«* 
out  at  any  time  the  Guaranty  Fund  which  is  the  pro- 
tection given  by  the  state  to  every  man,  woman  and 
child  who  has  deposited  anywhere  a  single  dime. 
Think  it  over,  $400,000.00  less  than  the  reserve  they 
should  have— AND  WE  DIDN'T  SAY  SO,  WATERS 
DID.  THAT  LETTER  TOLD  THE  REAL  SITUA- 
TION. 

BANK  DID  NOT  HAVE  SECURITY 

The  report  of  Fra/ier's  appointees  shows  that 
than  one-half  of  over  sf-7^4,0(M)  in  post  dated  check*  ind 
notes  pledged  as  collateral  for  these  excess  loans  were 
not  in  the  possesion  of  the  bank,  but  in  the  possession 
of  the  borrower  who  pledged  them,  and  that  the  ;-nly 
person  having  any  knoweldge  as  to  the  accuracy  of  the 


ITS  UIRTH.   ACTIVITIES  AND   LEADERS       85 

figures  affecting  these  post  dated  checks  and  notes  was 
a  woman  in  the  employ  of  Townley  and  his  gang  of 
itinerant  politicians,  to  whom  the  loans  were  made. This 
woman,  Mrs.  Clayton,  had  the  same  access  to  the 
vaults  as  bank  employees,  and  had  an  office  both  in 
front  and  in  the  rear  of  the  building,  and  was  without 
bond  of  any  kind  to  insure  the  bank  against  dis- 
honesty. 

RESERVE  LESS  THAN  NOTHING 

The  fact  was  disclosed  to  the  Banking  Board  that 
the  legal  reserve  of  the  bank  was  more  than  $400,000 
less  than  nothing.  That  it  had  loaned  until  it  was  strip- 
ped clean  and  that  the  cash  reserve  in  its  vaults  was 
more  than  $70,000.00  below  the  amount  required  by 
law.  That  before  the  October  notes  of  this  year  be- 
came due  there  was  even  at  that  time  in  the  bank  more 
than  $169,000.00  of  past  due  loans,  and  that  more  than 
$104,000.00  of  these  were  in  the  hands  of  lawyers  for 
collection  by  lawsuit. 

That  although  the  bank  did  not  own  its  own  bank- 
ing house  it  was  carrying  furniture  and  fixtures  at 
$2,000.00  more  than  a  bank  of  that  size  is  permitted  t'o 
invest  in  furniture  and  fixtures  and  banking  house 
combined,  and  at  more  than  $12,000.00  of  what  it  was 
actually  worth  as  sworn  to  by  an  unbiased  architect. 

FRAZIER'S  EXAMINERS   SIGN  THEIR  NAMES 

In  addition  to  this  report  presented  to  the  Banking 
Board,  of  which  the  fads  hare  given  oly  touch  the 
high  spots,  THE  TWO  DEPUTY  BANK  EXAMINERS 
PAID  BY  THE  STATE  TO  MAKE  THAT  REPORT, 
FAIRLY  AND  IMPARTIALLY  AND  WHO  POSSESS- 
ED NO  INTEREST  WHATSOEVER  IN  THK  !)E- 
VELOPEMENTS  WHICH  MNJHT  IJKSI'LT.  STATED 
THAT  THE  HANK  WAS  HOPELESSLY  INSOL- 
VENT AND  RECOMMENDED  THAT  ITS  DOORS 
JiE  CLOSED. 


36  THE  NONP ARTISAN  LEAGUE 

WHERE  FACTS  MAY  BE  FOUND 

Titt.se  are  the  facts  and  they  may  be%  found  in  the 
books  of  the  Scandinavian  American  Bank,  in  the 
papers  of  the  State  Banking  Department,  or  in  the  re- 
cord* of  the  Supreme  Court,  BUT  IP  THESE  FACTS 
WERE  FULLY  UNDERSTOOD  BY  THE  PEOPLE 
A.  C.  TOWNLEY,  WILLIAM  LEMKE,  GOVERNOR 
FRAZIER,  AND  THEIR  PUPPET  J.  R.  WATERS, 
WOULD  BE  STRIPPED  AS  BARE  OF  HONESTY 
ANI'  CHARACTER  AS  THOUGH  THE  SPOTLIGHT 
OF  TRUTH  AND  HONOR  WERE  THROWN  FULL 
1XT"  THE  DEX  OF  ALABAB  AXD  UTS  FORTY 
THIEVES. 

<>  course  this  outfit  had  to  do  something  to  dis- 
trar"  attention  from  themselves  so  they  resorted  to  a 
hubuM  and  tumult  of  unfounded  assertions  and  politi- 
cal vilification  in  the  Townley  kept  press  in  an  attempt 
to  tlraw  the  public  attention  from  the  true  conditions 
—and  thousands  of  trusting  framers  believed  the  So- 
cialists ! 

No  effort  has  here  been  made  to  present  anything, 
hut  the  ACTUAL  FACTS  tfOTXD  IX  BLACK  AM' 
WHITE  IN  THE  RECORDS.  THKSK  DO  NOT  DE- 
PEXD  FOR  THEIR  ACCURACY  UPON  THK  ANIMUS 
OF  DESIGNING  POLITICIANS  OH  THE  DIS 
HONBSTY  OF  PREVARICATIONS  IJOniHT  AND 
PAID  FOR.  Yet  this  condition,  driving  home  with 
sledsre  hammer  blows  the  fact  that  Townley  bled  the 
Scandinavian  American  Bank  white,  IS  THE  ONK 
WHICH  NOW  INSPIRES  THIS  NOX-RESIDEXT  SO 
CIALIST  AND  GOVERNOR  FRAZIER  AND  THEIR 
KEPT  PRESS  TO  SAVE  THEMSELVES,  AND  FOR 
THEIR  OWN  PROTECTION  LIKE  WOLVES  AT 
BAY.  TO  SNAP  EPITHETS  OF  ROBBERS,  THIEVES 
AND  CROOKS  AT  MR.  HALL  AND  MY- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       87 

SELF  WHO   OAUtJHT   THEM   RED  II  A. YD  ED    AND 
CALLED  FOR  A  SHOW  DOWN. 

BUT  ROTTEN  AS  THIS  DEAL  IS,  THE   WOUST 
IS  YET  TO  COME. 


88  THE  NONPABTISAN  LEAGUE 


;. 


CHAPTER   VII 
SOCIALISTS  AND  THE  BANK  OF  NORTH  DAKOTA 

At  the  very  time  these  men  were  looting  the  bank  at 
Valley  City,  one  of  the  arguments  for  getting  the 
farmers  to  take  stock  in  the  new  institution  was  that 
the  Legislature  was  creating  the  State  Bank  of  North 
Dakota,  Rumors  were  circulated  that  there  would  be 
millions  of  dollars  of  state,  county,  township,  city, 
village,  and*  school  money  deposited  in  the  Bank  of 
North  Dakota  for  which  it  would  pay  a  low  rate  of  in- 
terest r<»  the  municipalities,  and  that  consequently,  the 
Bank  of  North  Dakota  would  be  able  To  i'avor  banks, 
friendly  to  the  Socialist  leaders,  by  carrying  large  de- 
posits <>f  state  money  in  those  banks. 

Everybody  knows  that  in  each  locality  the  banks 
have  fought  to  obtain  the  deposit  of  the  school  district, 
township  and  county  funds.  In  some  counties,  the 
coui'ty  commissioners  Avere  getting  as  high  as  seven  per 
com  from  this  county  money.  The  banks  were  anxious 
to  cr.rry  the  county  or  school  district  sinking  fund  be- 
catis*  that  money  was  in  the  bank  for  a  definite  per- 
iod. <-f  time  and  could  be  used  as  a  reserve,  and  there- 
by the  bank  was  enabled  to  loan  to  its  customers  much 
mor-  than  they  otherwise  would  have  been  able  to  do. 
Monfiy  deposited  in  the  bank  which  is  not  there  for 
a,  definite  period  of  time  has  very  little  reserve  value, 
vail?-  . 

The  original  farmers'  program  declared  for  rural 
credit  banks  operated  at  cost.  The  progressive  think- 
ing laeii  and  87,000  of  them  voted  for  Frazier  in  the 
general  election  against.  20,000  for  his  opponent,  Mc- 
Arthur — believed  that  the  rural  credit  banks  would  be 
operated  the  same  way  as  farm  loans  are  made  in 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      89 

South  Dakota,  and  as  they  have  been  made  in  North 
Dakota  for  a  long  while  by  the  Board  of  University  atfd 
School  Lands — that  milllions  of  dollars  would  be  loaned 
out  to  the  farmers  at  a  low  rate  of  interest,  bonds  of 
the  state  heing  sold  to  get  these  funds,  and  that  the 
farmers  would  be  charged  jus£  enough  interest  to  enable 
the  state  to  come  Out  even  on  the  proposition  without  it 
costing  the  taxpayers  anything.  In  addition  to  that  it 
was  thought  that  we  would  devise  a  way  to  issue  bonds 
against  the  mortgages  and  bonds  now  held  by  the 
Board  of  University  and  School  Lands,  which  in  turn 
could  be  loaned  out. 

In  other  words,  we  figured  it  this  way: 

1  That  if  the  Hoard  of  University  and  School  Lands 
had  nine  million  dollars  worth  of  mortgages  and  bonds 
drawing  approximately  5  per  cent  interest. 

2  That  against   these  the   State  of  North  Dakota 
could  issue  five  per  cent  bonds. 

3  That  the  bonds  so  issued  could  be  sold, 

4  That  the  money  derived  could  be  loaned  out  to 
other  farmers,  in  exchange  for  first  farm  mortgages, 

5  That  against  these  mortgages  would  be  issued 
more  bonds,  and  we  felt  that  before  long  the  State 
of  North  Dakota  through  selling  its  bonds  would  have 
enough  money  on  hand  so  that  every  man,  woman  and 
child  who  wished  to  get  a  loan  on  their  land  at  a  low 
rate  of  interest  would  be  able  to  secure  one,  without 
it  costing  the  taxpayers  a  single  penny. 

Time  after  time  we  described  this  procedure  in  our 
speeches. 

Much  has  been  said  by  the  newspapers  about  the 
Bank  of  North  Dakota.  Clippings  have  been  sent  me 
from  newspapers  published  in  nearly  all  the  western 
states.  These  clippings  uniformly  telh 

1    The  low  rate  of  interest  at  which  the  farmers  of 


90  THK   \0\TAUTJSA\   LKAUITK 

North   Dakota  are  aide  to  secure  money  from  the  Bank 
of  'North  Dakota. 

'2  How  the  Ba.uk  of  North  Dakota  had  the  greatest 
urowth  of  any  bank 'in  the  United  States  having  in  a 
short  time  had  a  thirty-five  million  dollar  footing. 

•  >.  Nothing  is  said  about  the  comuplsory  deposit  of 
public  funds. 

The  truth  of  the  matter  is  that  the  vast  majority  of 
these  articles  are  palpably  false.  I  saw  one  written 
by  W.  AY.  Liggett,  the  man  who  Townle.y  himself  testi- 
fied, under  oath  is  a  Socialist  and  who  is  now  on  the 
state  payroll,  with  headquarters  in  Washington,  D.  C. 
lie  made  some  of  the  assertions  above  quoted. 

Naturally,  he  defended  the  bank!  Why  shouldn't 
ho?  If  the  department  he  is  working  for  ran  short  of 
funds  and  exceed  the  appropriation,  then  under  the 
laws  of  North  Dakota  the  Industrial  Commission, 
which  consists  of  the  governor,  commissioner  of  Agri- 
culture ami  labor,  and  the  attorney  general,  but  which 
really  is  the  (Jovernor.  can  transfer  the  tax  payers 
money  to  Liggett  ?s  department,  and  Liggett  thus  has 
more  money  to  spend.  The  truth  of  the  matter  is  that 
the  Bank  of  North  Dakota  UNLESS  IT  IS  HONK*- 
LY  ADMINISTERED  is  one  of  the  most  dangerous 
propositions  ever  foisted  upon  a  trusting  community, 

First  of  all,   I  will  quote  the  act  : 

BANK    OF   NORTH    DAKOTA 

HOUSE  BILL  NO.   18. 
(Committee  on   State  Affairs.) 
The  Bank  of  North  Dakota. 

An  Act  Declaring  the  purpose  of  the  State  of  North  Da- 
kota to  engage  in  the  banking  business  and  establishing  a  sys- 
tem of  banking  under  the  name  of  the  Bank  of  North  Dakota, 
operated  by  the  State,  and  defining  the  scope  and  manner 
of  its  operatic  and  the  powers  and  duties  of  the  ipersons 
charged  with  its  management;  making  an  appropriation 
therefor;  and  providing  penalties  for  the.  viloations  of  cer- 
tain provisions  there-of. 

Be  it  Enacted  by  the  Legislative  Assembly  of  the  State  of 
North  Dakota: 

Section  1,     For  the  purpose  of  encouraging  and  promoting 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      91 

agriculture,  commerce  and  industry,  the  State  of  North  Da- 
kota shall  engage  in  the  business  of  banking,  and  for  that 
purpose  shall,  and  does  hereby,  establish  a  system  of  bank- 
ing owned,  controlled  and  operated  by  it,  under  the  name  of 
the  Bank  of  North  Dakota. 

Section  2.  The  Industrial  Commission  shall  operate,  man- 
age and  control  the  Bank  of  North  Dakota,  locate  and  main- 
tain its  places  of  business,  of  which  the  principal  iplace  shall 
be  within,  the  state,  and  make  and  enforce  orders,  rules,  reg- 
ulations and  by-laws  for  the  transaction  of  its  business.  The 
business  of  the  Bank,  in  addition  to  other  matters  herein  spe- 
cified, may  include  anything  that  any  bank  may  lawfully  do. 
except  as  herein  restricted;  but  this  provision  shall  not  be 
held  in  any  way  to  limit  or  qualify  either  the  ipdwers  of  the 
Industrial  Commission  herein  granted,  or  the  functions  of 
said  Bank  herein  defined.  The  Industrial  Commission  shall 
mee-t  within  twenty  days  after  the  passage  and  approval  of 
this  Act  to  begin  the  organization  of  the  Bank. 

Section  3.  To  accomplish  the  purposes  of  this  Act,  the  In- 
dustrial Commission  shall  acquire  by  (purchase,  lease  or  by 
exercise  of  the  right  of  eminent  domain,  as  provided  oy 
Chapter  36  of  the  Code  of  Civil  Procedure/  Compiled  Laws 
of  1913,  all  requisite  property  and  property  rights,  and  may 
construct,  remodel,  and  repair  buildings;  but  it  shall  not 
invest  more  than  ten  per  cent  of  the  capital  of 
the  bank  in  furniture,  fixtures,  lands  and  buildings  for  office 
purposes. 

Section  4.  The  Industrial  Commission  shall  obtain  such 
assistance  as  in  its  judgment  may  be  necessary  for  the  es- 
tablishment, maintenance  and  operation  of  the  Bank.  To  that 
end  it  shall  appoint  a  manager,  and  may  appoint  such  sub- 
ordinate officers  and  employes  as  it  may  judge  expedient. 
It  may  constitute  such  Manager  its  general  agent,  in  respect 
to  the  functions  of  said  Bank,  but  subject,  nevertheless,  in 
•such  agency,  to  the  supervision,  limitation  and  control  of  the 
commission.  It  shall  employ  such  contractors,  architects, 
builders,  attorneys,  cashiers,  tellers,  clerks,  accountants,  and 
other  experts,  agents  and  servants  as  in  the  judgment  of  the 
Commission  the  interests  of  the  state  may  require-,  and  shall 
define  the  duties,  designate  the  titles,  and  fix  the  compensa- 
tion and  bonds  of  all  such  persons  so  engaged;  provided, 
however,  that  subject  to  the  control  and  regulation  of  the 
Commission,  the  Manager  of  th©  Bank  shall  appoint  and  em- 
ploy such  deiputies,  cashiers,  tellers,  and  other  subordinates, 
and  such  contractors,  architects,  builders,  attorneys,  clerks, 
accountants  and  other  experts,  agents  and  servants,  as  he 
shall,  in  his  judgment,  deem  are  required  by  the  interests  of 
the  Bank.  The  total  compensation  of  such  appointees  and 
employees,  together  with  other  expenditures  for  the  opera- 
tion and  maintenance  of  the  Bank,  shall  remain  within  th- 
approbation  and  earnings  lawfully  available  in  each  year  for 
such  purpose.  All  officers  and  employes  of  the  Bank  engaged 
upon  its  financial  functions  shall,  before  entering1  upon  their 
duties,  respectively  furnish  good  and  sufficient  Donds  to  tha 


92  THE  NONPAKTISAN  LEAGUE 

state  in  such  amount  and  upon  such  conditions  as  the  com- 
mission may  require  and  approve;  but  the  bond  of  the  Man* 
ager  shall  not  be  less  than  fifty  thousand  dollars.  Such  bond 
shall  be  filed  with  the  Secretary  of  State. 

Section  5.  The  Industrial  Commission  may  remove  and 
discharge  any  and  all  persons  appointed  in  the  exercise  of 
the  powe-rs  granted  by  this  Act,  whether  by  the  Commission 
or  by  the  Manager  of  the  Bank,  and  any  such  removal  may 
be  made  whenever  in  the  judgment  of  the  Commission  the 
public  interests  require  it;  provided,  however,  that  all  ap- 
pointments and  removals  contemplated  by  tnis  Act  shall  be 
so  made  as  the  Commission  shall  deem  most  fit  to  promote 
the  efficiency  of  the  public  service. 

Section  6.  The  Bank  shall  be  opened  and  shall  proceed  to 
transact  business  whenever  there  shall  be  delivered  to  the 
Industrial  Commission  bonds  in  the  sum  of  two  million  dol- 
lars issued  by  the  .state  as  may  be  provided  by  law  for  such 
purpose.  The  fund  procured  by  the  negotiation  and  sale  of 
such  bonds  is  hereby  designated  and  shall  be  known  as  the 
capital  of  said  Bank. 

Section  7.  All  state,  county,  township,  municipal  and 
school  district  funds,  and  funds  of  all  penal,  educational  and 
industrial  institutions  and  all  other  funds  shall  be,  by  the 
person  having  control  of  such  funds,  neposited  in  the  Bank 
of  North  Dakota  within  three  months  from  the  passage  and 
approval  of  tlm  Act.  subject  to  disbursement  for  public  (pur- 
poses on  checks  drawn  by  the  proper  officials  in  the  manner 
now  or  hereafter  to  be  provided  by  law;  provided,  however, 
that  on  a  proper  showing  made  by  any  official  having  con- 
trol of  public  funds,  the  Industrial  Commission  may  permit 
a  postponement  of  the  deposit  of  such  funds  or  any  part 
thereof  in  the  Bank  of  North  Dakota,  the  period  of  such 
postponement  not  to  exceed  six  months.  And  provided,  fur- 
ther that  if  any  such  funds  are  now  loaned  by  authority  of 
law  under  a  contract  terminating  at  a  future  time,  then  the 
deposit  of  such  funds  in  the  Bank  of  North  Dakota  shall  not 
be  required  until  two  months  after  the  time  of  expiration  of 
such  contract.  Any  person  who  shall  violate  any  of  the  pro- 
visions of  this  section  shall  be  guilty  of  a  misdemeanor  and 
upon  conviction  thereof  shall  be  punished  by  Improsonment 
in  a  county  jail  for  not  less  than  ninety  days,  and  by  a  fine  of 
not  less  than  one  hundred  dollar-;. 

Section  8.  Whenever  any  of  the  public  funds  hereinbefore 
designated  shall  be  deposited  in  the  Bank  of  North  Dakota, 
as  hereinbefore  provided  the  official  having  control  thereof, 
and  the  sureties  on  the  bond  of  every  such  official,  shall  be 
exempt  from  all  liability  by  reason  of  loss  of  any  such  de- 
posited funds  while  so  deposited. 

Section  D.  The  Bank  of  North  Dakota  may  receive  depos- 
its from  any  source,  including  the  United  States  Govern- 
ment and  any  foreign  or  domestic  individual,  corporation,  as- 
sociation, municipal,  bank  or  government.  Funds  may  be  de- 
posited to  the  credit  of  the  Bank  of  North  Dakota  In  any 
bank  or  agency  approved  by  the  Industrial  Commission. 


ITS  BIRTH.  ACTIVITIES  AM>  LKADKliS       93 

Section  10.  All  deposits  in  the  Bank  of  North  Dakota  are 
hereby  guaranteed  by  the  state.  Such  deposits  shall  be*  ex- 
•  •mpt  from  state,  county,  and  municipal  taxes  of  any  and  all 
kinds. 

Section  11.  Funds  deposited  by  State  Banks  in  the  Bank 
of  North  Dakota  shall  be  deemed  "available  funds"  within 
the  meaning  of  that  term  as  used  in  Section  5170  of  the 
Compiled  Laws  of  1918.  For  banks  that  make  the  Bank  of 
North  Dakota  a  reserve  depositary,  it  may  perform  the  func- 
tions and  render  the  services  of  a  clearing  house,  including 
all  facilities  for  providing  domestic  and  foreign  exchange, 
and  may  re-discount  paper,  on  such  terms  as  the  Industrial 
Commission  shall  provide. 

Section  12.  The  Industrial  Commission,  unless  otherwise 
limited  by  law,  shall  from  time  to  time-  fix  the  rates  of  inter- 
est allowed  and  received  in  transactions  of  the  Bank.  Such 
rates  shall  be  as  nearly  uniform  and  constant  as  practicable, 
and  shall  not  be  fixed  or  changed  to  work  any  discrimination 
against  or  in  favor  of  any  person  or  corporation.  But  in  re- 
spect to  time  deposits  received  by  the  Bank,  transaction  may 
be  reasonably  classified  as  to  the  amounts  and  the  duration 
of  time  involved,  and  a  reasonable  differentiation  of  interest 
rates  based  on  such  classification  may  be  allowed.  When  in- 
terest is  allowed  on  any  deposits  it  shall  not  be  less  than 
one  or  more  than  six  percent.  The  Industrial  Commission 
shall  also  fix  reasonable  charges,  without  unjust  discrimina- 
tion, for  any  and  all  services  rendered  by  the  Bank. 

Section  13.  All  checks  and  other  instrument-;  and  items  of 
exchange  payable  on  demand,  sent  by  the  Bank  of  North  Da- 
kota to  any  State  Hank  or  banking  association  in  North  Da- 
kota, for  collection,  shall  be  such  State  bank  or  banking 
association  remitted  fo.r  at  par  to  the  Bank  of  North  Dakota. 
Any  person  or  corporation  who  shall  violate  any  of  the  pro- 
visions of  this  -ection  shall  be  guilty  of  a  misdemeanor. 

Section  14.  Th«  Bank  of  North  Dakota  may  deposit  funds 
in  any  bank  or  banking  association  within  or  without  the 
>fate  upon  such  terms  and  conditions  as  the  Industrial  Com- 
mis-ion  shall  determine. 

Section  15.  The  Bank  of  North  Dakota  may  transfer  funds 
to  other  departments,  institutions,  utilities,  industries,  enter- 
prises or  busine-ss  projects  of  the  state,  which  shall  be  return- 
ed with  interest  to  the  Bank.  It  may  make  loans  to  counties, 
cities  or  political  subdivisions  of  the  state,  or  to  state  or 
rational  banks,  on  such  terms,  and  under  such  rules  and 
regulations,  as  the  Industrial  Commission  may  determine; 
but  it  shall  not  make  loans  or  give  its  credit  to -any  individ- 
ual, association  or  private  corporation,  except  that  it  may 
make  loans  to  any  individual,  association  or  private  corpor- 
ation, secured  by  duly  recorded  first  mortgage,  on  real  es- 
tate  in  i he  State  of  North  Dakota  in  amounts  not  to  exceed 
one  half  the  value  of  the  security,  or  secured  by  warehouse 
receipts  issued  by  the  Industrial  Commission  or  by  any  li- 
censed warehouse  within  the  state,  in  amount*  not  to  ex- 
tl  ninety  per  cent  of  the  value  of  the  commodities  evi- 


94  THE  NONPARTISAN  LEAGUE 

denced  thereby.  It  shall  not.  however,  loan  on  real  estate 
security  more  than  thirty  per  cent  of  its  capital,  nor  in  addi- 
tion thereto,  more  than  twenty  per  cent  of  its  deposits.  Ad- 
ditional funds,  that  may  be  required  for  such  real  estate 
loan?,  shall  be  iprocured  from  the  sale  of  state  bonds  as  may 
be  provided  by  law. 

Section  16.  The  Industrial  Commission  shall  prescribe  the 
forms  of  application  for  a  mortgage  loan  on  real  estate,  and 
shall  provide  for  apipraisal  of  the  proposed  security.  Until 
otherwise  provided  by  the  Commission  when  an  application 
for  a  mortgage  loan  on  real  estate  is  made,  it  shall  be  refer- 
red to  the  Commission  of  University  and  School  Lands,  for 
appraisal  of  the  proposed  security.  The  Commissioner  of  Uni- 
versity and  School  Loan ds,  shall  thereupon  promptly  cause  it 
to  be  appraised  in  the  same  inaner  as  school  lands  are  ap- 
praised, gnd  upon  completion  of  such  appraisal  shall  return 
the  application,  together  with  the  aippraisal,  to  the  Bank. 
Thereupon  the  Bank  shall  promptly  determine  whether  to 
grant  or  refuse-  any  part  or  all  of  such  loan. 

Section  17.  Every  such  mortgage  shall  contain  an  agree- 
ment providing  for  the  re-payment  of  the  loan  on  an  amortiza- 
tion plan  by  means  of  a  fixed  number  of  annualin  bailments  suf- 
ficient to  cover,  first,  a  charge  on  the  loan,  at  a  rate  not  ex- 
ceeding the  interest  rate  in  the  last  series  of  real  estate  loan 
bonds  issued,  if  any,  by  the  State  of  North  Dakota;  second. 
a  charge  for  administration  and  surplus,  at  a  rate  not  ex- 
ceeding one  per  cent  per  annum  on  the  unpaid  principal,  said 
two  rates  combined  constituting  the  interest  rate  on  the 
mortgage;  and.  third,  such  amounts  to  be  applied  on  the 
principal  as  will  extinguish  the  debt  in  not  less  than  ten  nor 
more  than  thirty  years;  provided,  however,  that  advanced 
payment  of  one  or  more  annual  installments,  for  the  reduc- 
tion of  the  principle,  or  the  payment  of  the  entire  principal, 
may  be  made  at  any  regular  installment  date;  and,  provided 
further,  that  in  case  of  a  crop  failure  which  reduces  th^ 
mortgagor's  reasonable  crop  income  by  one-half,  all  payments 
under  said  mortgage  may,  in  the  discretion  of  the  Industrial 
Commission,  be  extended  for  one  year,  upon  condition  that  on 
the  payment  of  all  installments,  such  further  payment  shall 
be  made  as  will  pay  the  interest,  with  interest  thereon,  for 
the  years  for  which  no  payments  were  made.  The  Industrial 
Commission  shall  determine  whether  a  mortgagor  is  entitled 
to  an  extension  of  the  payment  of  any  installment  under  the 
provision  of  this  section. 

Section  18.  Every  such  mortgage,  and  the  note  or  other  ob- 
ligation thereby  secured,  shall  run  to  "The  Manager  of  the 
Bank  of  North  Dakota,  his  successors  in  office  or  his  as- 
signs," as  payee  and  mortgagee,  and  shall  contain  a  recital 
that  it  is  executed  and  delivered  in  conformity  with  and  up- 
on the  conditions  expressed  in  this  Act,  designed  by  its  title 
and  the  date  of  its  approval.  After  having  been  duly  recorded 
in  each  county  in  which  the  lands  therein  described  are  sit- 
uated, every  such  mortgage  shall  be  delivered  to  the  Man  a- 


ITS   BIRTH,  ACTIVITIES  AND   LEADERS       95 

gar  of  said  bank  and  together  with  said  note  or  other  obli- 
gation shall  be  held  by  the  Manager  as  a  part  of  the  assets 
of  the  bank,  or  shall  be  otherwise  disposed  of,  as  hereafter 
provided.  If  so  held,  payments  upon  the  note  or  other  obliga- 
tion secured  by  said  mortgage  shall  be  made  to  the  Bank  of 
North  Dakota,  and  whenever  it  shall  have  been  fully  paid, 
the  Manager  shall  promptly  satisfy  and  discharge  the  mort- 
gage lien  of  record  and  deliver  the  mortgage  cancelled,  with 
a  satisfaction  thereof,  to  the  person  entitled  to  receive  it. 

Section  19.  Every  such  mortgage,  together  with  the  note 
o-r  other  obligation  thereby  secured,  may  be  sold  and  assign- 
ed upon  the  payment  to  the  bank  of  the  full  value  thereof, 
and  upon  such  sale  and  assignment,  the  Manager  may  en- 
dorse either  with  or  without  recourse.  In  that  case  payments 
upon  said  note  or  other  obligation  shall  be  made  to  the  per- 
son entitled  to  receive-  them ;  but  each  such  assignment  shall 
be  made  subject  to  the  provisions  concerning  extension  of 
the  time  of  payments  on  account  of  crop  failures  as  provided 
in  Section  17  of  this  Act,  and  subsequent  action  of  the  In< 
dii -trial  Commission  in  that  regard  shall  be  binding  upon  the 
assignee  of  such,  mortgage;  provided,  however,  that  after  as- 
signment of  such  mortgage  extensions  of  payments  for  a 
yearly  'period  shall  be  limited  in  total  number  to  not  more 
Than  one  for  every  period  of  five  years  or  fraction  thereof 
during  which  such  mortgage  has  to  run  after  the  date  of  as- 
signment. 

Section  20.  Every  such  mortgage,  together  with  the  note 
or  other  obligation  thereby  secured,  may  be  assigned,  and 
upon  order  of  the  Industrial  Commission  shall  be  assigned, 
to  the  State  Treasurer  of  the  State  of  NoriJi  Dakota  as  se- 
curity for  bonds  to  be  issued  by  the  state  as  provided  by 
law.  In  case  of  such  assignment  all  payments  due  upon  said 
note  or  other  obligation  shall  be  made  to  the  State  Treasur- 
er, and  the  money  so  by  him  received  shall  be  by  him  held 
or  disbursed  as  may  be  provided  by  law.  If  while  any  such 
mortgage  so  assigned  to  the  State  Treasurer  is  in  his  hands, 
the  note  or  obligation  thereby  secured  shall  have  been  fully 
paid,  the  State  Treasurer  shall  so  certify  to  the  Manager  of 
the  bank,  who  shall  thereupon  proceed  to  satisfy  said  mort- 
gage in  the  same  manner  as  though  said  note  or  other  obli- 
gation had  been  paid  directly  to  the  bank.  In  case  of  such 
assignment  to  the  State  Treasurer  of  any  such  mortgage, 
the  provisions  contained  in  Section  19  of  this  act.  respecting 
extensions  on  account  of  crop  failure,  shall  be  effective  and 
shall  be  applied. 

Section  21.  All  business  of  the  bank  may  be  conducted 
under  the  name  of  "The  Bank  of  North  Dakota,"  Title  to 
property  pr.rtaining  to  the  operation  of  the  bank  ^hall  be  ob- 
tained and  converted  in  the  name  of  "The  State  of  North 
Dakr.tx  doing  business  as  the  Bank  of  North  Dakota."  Writ- 
ten instruments  shall  be  executed  in  the  name  of  the  State 
of  North  Dakota,  signed  by  any  two  members  of  the  Indus- 
trvil  Commission,  of  whom  the  Governor  shall  be  one,  or  by 
the  A'lanagr-r  of  the  Bank  of  North  Dakota  within  the  scope 


96  THE  NONPABTISAN  LEAGUE 

of  his  authority  so  to  do  as  defined  by  the  Industrial  Com- 
mission. 

Section  22.  Civil  actions  may  be  brought  against  the  Stale 
of  North  Dakota  on  account  of  causes  of  action  claimed  to 
have  arisen  out  of  transactions  connected  with  the  opera- 
tion of  the  Bank  of  North  Dakota,  upon  condition  that  the 
provisions  of  this  section  are  complied  with.  In  such  actions 
the  state  shall  be  designated  as  "The  State  of  North  Dakota, 
doing  business  as  the  Bank  of  North  Dakota,"  and  the  ser- 
vice of  the  process  therein  shall  be  made  upon  the  Manager 
of  said  bank.  Such  actions  may  be  brought  in  the  same  man- 
ner and  shall  be  subject  to  the  same  provisions  of  law  as 
other  civil  actions  brought  pursuant  to,  the  provisions  of  the 
Code  of  Civil  Procedure.  Such  actions  shall  be  brought,  how- 
ever in  the  county  where  the  Bank  of  North  Dakota  shall 
have  its  principal  place  of  business,  except  as  provided  in 
Sections  7415,  7416  and  7418.  Compiled  Laws  of  North  Dakota, 
1918.  The  provisions  of  Section  375  and  657  of  the  Compiled 
Laws  of  1913  shall  not  apply  to  claims  against  the  state,  af* 
fected  by  the  provisions  of  this  section. 

Section  23.  The  State  Examiner  shall  personally;  or  through 
deputy  examiners  visit  the  Bank  of  North  Dakota  at  least 
twice  annually,  and  shall  inspect  and  verify  the  a -sets  in  its 
possession  and  under  its  control,  with  sufficient  thorough- 
ness of  investigation  to  ascertain  with  reasonable  certainty 
whether  the  valuations  are  correctly  carried  on  it-;  books. 
He  shall  investigate  its  methods  of  operation  and  accounting. 
He,  shall  report  the  results  of  each  such  examination  and  in- 
vestigation to  the  Industrial  Commission  as  -oon  as  practic- 
able, and  to  the  Legislative  Assembly  at  its  next  ensuing  ses- 
sion, and,  as  provided  in  paragraph  numbered  5,  of  Section 
5146  of  the  Civil  Code.  Compiled  Laws  1913,  to  the  State 
Banking  Board. 

Section  24.  There  is  hereby. appropriated  out  of  the  gen- 
eral funds  of  the  State,  not  otherwise  appropriated,  one  hun- 
dred thousand  dollars,  or  so  much  thereof  as  may  be  neces- 
sary, to  carry  out  the  provisions  of  this  act.  This  appropria- 
tion is  hereby  made  available  immediately  upon  the  passage 
and  approval  of  this  act.  The  Industrial  Commission  shall, 
out  of  the  earnings  of  the  bank  make  provision  for  accumu- 
lating a  fund  with  which  to  replace  in  the  general  funds  of 
the  state,  the  amount  received  by  the  commission  under  this 
appropriation,  as  may  be  directed  by  the  Legislative  Assem- 
bly. 

Section  25.  All  acts  and  parts  of  acts  inconsistent  with 
this  act  are  hereby  repealed. 

Section  26.  This  act  is  hereby  declared  to  be  an  emergen- 
cy measure  and  shall  take  effect  and  be  in  force  from  and  af- 
ter its  passage  and  approval. 

Approved  February  25,  1919. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS      97 

As  a  member  of  the  Industrial  Commission,  I  was 
one  of  the  three  men  called  upon  to  open  this  bank. 
Section  6  provided  that  it  should  be  opened  whenever 
there  was  delivered  to  the  Industrial  Commission 
(which  is  the  governor)  the  sum  of  two  million  dollars, 
and  under  Section  4  there  had  been  $100,000  appro- 
priated to  get  the  bank  started.  Even  while  the  bill 
was  being  referred,  two  members  of  this  Commission 
— the  Governor  and  Commissioner  of  Agriculture  and 
Labor — leased  a  big  brick  building,  and  engaged  help 
in  order  to  have  the  bank  started. 

-}.  R.  Waters,  whom  Governor  Frazier  and  the  Com- 
missioner of  Agriculture  and  Labor,  Mr.  Hagen,  ap- 
pointed to  manage  the  Bank,  HAD  NEVER  RUN  A  1 
MAXIv  IX  HIS  LIFE.  BEFORE  COMING  TO  NORTH 
DAKOTA  FROM  IOWA  HE  RAN  A  LIVERY  STA- 
BLE. In  North  Dakota,  the  Governor  appointed  him 
bank  examiner  at  the  request  of  the  "gang."  Waters 
knew  no  more  about  the  banking  business  than  a  ten 
year  old  child,  reared  in  New  York  City  would  know 
about  raisin  «r  oranges  in  California. 

11    is  a,  sample  of  Socialist    efficiency. 

Some  of  the  two  million  dollars'  worth  of  bonds  pro- 
vided for  in  Section  6,  were  sold  to  a  few  local  banks 
in  Xorth  Dakola.  wfe«  are  anticipating  depos'is  in 
their  banks  but  tliis  method  got  to  be  kind  of  slow, 
the  Hank  of  North  Dakota  bought  the  bonds  from  the 
state  itself.  In  other  words,  the  State  of  North  Dakoia 
sold  to  itself,  operating  as  the  Bank  of  North  Dakoa, 
two  million  dollars  worth  of  bonds.  The  right  hand 
handing  the  left  hand  the  bonds  and  the  left  hand 
handing  the  ri.u'ht  hand  promises  to  pay.  After  this 
marvelous  financial  transaction,  the  Bank  of  North 
Dakola  had  two  million  dollars  worth  of  bonds —  and 
a  ft  •'!•  wards  hcmir  unble  to  get  some  "trusting  con- 


98  THE  NQNPARTISAN  LEAGUK 

cenr'  to  buy  them,  they  put  bunds  up  as  collateral  and 
borrowed  money  at  seven  percent. 

Next  Section  7  came  into  play.  Every  treasurer    of 
every  county,  township,   school  district,   city,  village 
and  Ihe  Slate  Treasurer  has  his  choice — these  treasur- 
ers could  either  put  the  public  funds  belonging  to  the 
tax  payers  into  the  Bank  of  North  Dakota  controlled  by 
the  Socialists— OR  GO  TO  JAIL,  NATURALLY  NONE 
OF  THE  TREASURERS  WANTED  TO  GO  TO  JAIL, 
THEY  PREFERRED     RATHER     TO     SEND     THE 
FUNDS  TO  THE  BANK  OF  NORTH  DAKOTA  AND 
TAKE  CHANCES  ON  BEING  ABLE     SOME     DAY 
TO  GET  THOSE  FUNDS  BACK.     Nineteen     million 
dollars   of  the  taxpayers'  money  was  turned  over  to 
the  Socialists  to  control.  They  could  do  with  this  mon- 
ey what  they  wished.  The  Bank  of  North  Dakota,  con- 
trolled by  the  Socialists,  through   its  Manager,  J.  R, 
Waters,  who  was  appointed  by     the     Governor     and 
Commissioner  of  Agriculture  and  Labor,  at  the  request 
of  the  Socialists,  could  only  be  examined  by  the  bank 
examiner,  O.  E.  Lofthus.  who  is  a  Socialist  and  who 
ran  for  Treasurer  of  North  Dakota  on  the  Socialist  tick- 
et—THE  SOCIALISTS.     NOT     THE     FARMERS  OF 
NORTH  DAKOTA  ARE  IN  CONTROL. 

Next  Section  15  came  into  use.  It  says  that  the  Bank 
of  North  Dakota  may  transfer  funds  to  other  depart- 
ments, institutions,  utilities,  industrial  enterprises,  or 
public  projects  of  the  State.  Naturally,  with  this  induce 
ment  of  easy  money,  with  no  bud»ei  committee  to 
hamper,  many  departments  soon  exceeded  the  appro- 
priations allowed  them  by  the  Legislature  and  Wanted 
money,  ami  just  as  naturally,  the  Industrial  Commis- 
sion (which  is  the  Governor)  saw  to  it  that  the  tax 
payers,  MONEY  WAS  TURNED  OVER  TO  THE  FA- 
VORED DEPARTMENTS. 

fri  other  words  under  this  law,  if  the  mill  at  Draka 


ITS  BIRTH/ACTIVITIES  AND  LEADERS       99 

loses  $7,000  in  twenty-six  days,  as  the  State  Auditor 
claims  his  investigation  showed,  there  is  nothing  to 
prevent  the  Industrial  Commission,  from  taking  $7,000 
deposited  by  the  cities,  towns,  villages,  counties,  town- 
ships, school  districts  or  the  State  and  turn- 
ing the  same  over  to  the  Drake  mill,  to  be 
handled  by  Mr.  J.  A.  McGovern,  Manager  of  the  Mill 
and  Elevator  Association,  a  man  who  could  not  even 
successfully  operate  a  farmers  elevator  down  at  Madi- 
son, South  Dakota— an  ELEVATOR  WHICH  WAS 
UNSUCCESSFUL  UNDER  HIS  MANAtiEMENT- 
MORE  SOCIALIST  EFFICIENCY. 

Likewise  there  is  nothing  to  prevent  this  kind  of  an 
arrangement — friendly  Socialists  can  buy  lots  in  the 
city  of  Fargo  for  $5000,  a  little  bit  later  ihey  can  have 
the  Industrial  Commission,  say  that  they  need  a  ware- 
house in  the  City  of  Fargo,  they  can  then  sell  those  lots 
for  any  price  which  the  Industrial  Commission,  and 
they  may  agree  upon.  THE  ENTIRE  TRANSACTION 
IS  SECRET,  aside  from  the  employees  as  the  only  man 
who  can  examine  it  is  the  Socialist  Bai-k  Examiner. 
WHO  OWES  HIS  APPOINTMENT  TO  TNK  GOVKR- 
NOR  AND  CAN  BE  REMOVED  BY  HIM.  WHAT 
(JAN  BE  DONE  AT  FARGO  CAN'  UK  DONE  (N 
EVERY  OTHER  TOWN  IN  THE  STATE. 

Through  the  Bank  of  North  Dakota,  these  Social- 
ists can  loot  the  state  of  millions  of  dollars,  and  can  do 
it  all  while  the  farmers  of  North  Dakota  are  dreaming 
along  in  "blissful  ignoranr-e, "  and  with  William 
Lemke.  as  attorney  general,  if  his  actions  in  the  Scan- 
dinavian American  Bank  ease,  WHKKK  HE  DE 
FENDED  THE  CROOKED  PRESIDENT.  ARK  ANY 
CRTTKKION,  THE  LOOTER  WILL  BK  SAFE. 

I  ask,  is  this  not  the  chief  reason  that  the  Social- 
ists are  miming  William  Lemke  for  attorney  general 
of  this  State? 


100  THE  NONP ARTISAN  LEAGi 

The  entire  management  of  the  Banl 
ta  is  political.  When  the  deposits  first  c;. 
word  was  sent  forth  that  the  money  would  be  re-de- 
posited in  the  comm;  ,:me  from,  but  it  was 
only  a  short  time  before -it  was  found  that  if  a  bank 
unfriendly  to  tb'              1st  leaders,  IT  WAS  UN- 
FRIENDLY AT  ITS  PERIL.  One  bank  manager  had 
approximately  $70,000  of  state  money  on  hand  depos- 
ited by  the  Bank  of                Dakota,  the  socialists  be- 
vinclly  to  'dual,     the     Bank     of 
North  Dako'ta  withdrew  without  any  prox 
imately  $70,000,  a  sum  which   could  hrrve  rnmecl     al 
three  of  the  banks  and"                                     he  hands  o 
the  ree.eiver.  Every  one  of  thr-                3  was  a  farme 
bank,  having  dozens  and  dozens  of                stoekhold 
ers,  and  was  in  no  sense  a  bi-                             :.       Th 
banks  were  saved  only  because  a  few  d:               re  in 
conversation  with  the  pi                                           him  o 
the  probabilities  of  tin                                    Ming-  and  h 
had  gone  and  made  arrangements  to  -borrow     $100 
000,00. 

The   Socialist  leaders   today,   through    manipulatio 
of  millions  of  dollars  of  the   1  money, 

.make  or  break  any  bank  in  the  State  of  North  Dakota, 
THE  SOCIALIST  LEADERS  BY  THE  MANIPULA- 
TION OF  THESE  MILLIONS  OF  DOLLARS, 
THROUGH  THE  USE  OF  IT,  CAN  CREATE  AN 
ENORMOUS  AMOUNT  OF  POLITICAL  PRESTIGE^ 
AND  A  GREAT  POLITICAL  MACHINE  WHICH 
THEY  CAN  USE  AGAINST  THE  VERY  FARMERS 
WHO  VOTED  TO  PUT  TUB  TOOLS  OF  THESE  SO- 
CIALISTS INTO  OFFICE. 

Section  16  of  the  Bank  act  provided  that  the  land 
might  be  appraised  through  men  appointed  by  the  In- 
dustrial Commission,  which  is  the  Governor,  or  the  So- 
cialist leaders.  The  men  who  had  appraised  the  land 


ITS  nipxTH,  ACTIVITIES  AXD  LEADER*    101 

for  the  Board  of  Tni  :nd  School  Lands  for  the 

>irly  y p.Mrs.  have  appraised  it  so  well  that  the 
State  had  not  sustained  a  si-  ny  of  loss — BUT 

THESE  WERE  NOT  GOOD  ENOUGH  FOR  THE  IN- 
DUSTRIAL COMMISSION  WHICH  HAD  INTRUST- 
ED TO  IT  TEN  MILLION  DOLLARS  and  the  leading 
has  been  Seaman  A.  Smith,  elected  on  the  So- 
ticket  as  sheriff  of  Golden  Valley  County,  who 

•;en  on  the  si  roll  a  good  share  of  the  time 

the  Socialists  got  into  power. 

>r  Section  16,  the  Industrial  Commission  can  if 
they  wish  APPOINT  EVERY  SOCIALIST  IN  NORTH 
DAKOTA  TO  BE  A  LAND  APPRAISER,  and  can  fix 
their  compensation. 

There  are  NO  SAFEGUARDS  in  the  law  to  PRO- 
TECT THE  TAX  PAYERS  against  THIS  HORDE  OF 
EMPLOYEES.  And  in  as  much  as  the  Brtnk  of  North 
Dakota  is  an  institution  of  this  State,  if  they  have  not 
enough  money  to  pay  these  appraisers,  they  can 
under  Section  15  transfer  funds  to  .a  real  estate  de- 
partment which  they  may  create  to  facilitate  the  mak- 
ing of  loans  to  pay  these  men— this  WHOLE  THING  IS 
ROTTEN  TO  THE  CORE. 

rest  rates  are  six  percent  on  -a  first  mortgage 
loan  to  the  farmei — for  thirty  years  the  state  has  been 
loaning  its  money  through  the  Board  of  University  and 
School  Lands  at  five  percent  to  the  farmers,  and  if 
this  bank  with  its  enormous  overhead  expense  had  not 
been  created,  but  if  instead  of  this  conglomeration  of 
<L  horde  of  hired  help  at  fancy  salaries,  the  South  Da- 
kota idea,  had  been  followed,  the  fanners  could  have 
•got  money  at  five  percent  instead  of  six. 

Every,  time  a  bad  loan  is  made  by  the  bank,  it  sim- 
ply means  an  additional  expense  must  be  borne  by  the 
taxpayers,  every  deficiency  must  be  met  by  the  tax- 
payers.  Tho  Socialists  when  they  advocated  this  bank 


102  THE  NONPAKTISAN  LEAGUE 

told  the  people  how  the  MONEY  SHOULD  BE  KEPT 
IN  NORTH  DAKOTA,  instead  of  being  deposited  in 
Wall  Street  concerns  at  two  percent  interest,  whereas 
the  farmers  had  to  pay  ten  percent. 

IF  THE  STATEMENTS  OF  THE  FORMER  MAN- 
AGER OF  THE     BANK     ARE     TRUE— THEN     IN 
APRIL  1920  THHE  BANK    OF    NORTH    DAKOTA 
HAD  OVER     NINE  MILLION  DOLLARS     DEPOS- 
ITED IN  THE  TWIN  CITIES,  CHICAGO  AND  NEW 
YORK  AND  OTHER  PLACES  OUTSIDE  OF   THE 
STATE.     In  other  words,  in  April  at  the  very  time  the 
farmers  needed  the  money  the  most  over  nine  millions 
of  dollars  were  deposited  outside  of  North  Dakota  at 
two  percent  interest,  and  at  this  very  time  the  farmers 
were  paying  eight  and  ten  percent  to  the  bankers  and 
Cathro  under  oath,  only  a  few  days  ago  admitted  re- 
luctantly THAT  HE  HAD  FOUR  MILLION  DOLLARS 
IN   ONE   MINNEAPOLIS   BANK  AT   THAT   TIME 
THUS  VERIFYING     MR.     BRINTON'S     ACCUSA- 
TIONS. 

Here  is  where  the  money  was  deposited  by  Cathro 
according  to  Mr.  Brinton. 

First  National  Bank,  Minneapolis  $3,846,991.15 

Midland  National  Bank,  Minneapolis  447,006.75 

Mercantile  State  Bank,  Minneapolis 61,458.26 

First  National  Bank,  St.  Paul  3,578,258.54 

First  National  Bank,  Duluth  310,212.71 

City  National  of  New  York,  N.  Y 226,697.27 

Merchants  Loan  and  Trust  Co.  Chicago....     606,054.60 


Two  percent  money  deposited 

outside  the  state $9,116,676.28 

The  Bank  of  North  Dakota  or  course  makes  profits 
why  shouldn't  it — for  much  money  which  the  different 
counties  and  municipalities  used  to  receive  five  percent 
interest  for  an  even  more  they  are  now  getting  from 


ITS  FU.RTH,  ACTIVITIES   AM)   LEAKERS      10:* 

to  four  percent.  This  is  what  the  Socialsits  call  "pro- 
fit"— it  is  not  profit  at  all!  It  is  taking  the  money 
which  the  county  formerly  had  away  from  tlie  county 
and'  giving  it  to  the  Bank  of  North  Dakota,  where  they 
are  getting  from  two  to  four  percent.  On  milloins  of 
dollars,  this  item  of  interest  is  enormous. 

And,  of  course,  IT  WAS  NOT  LONG  BEFORE  THE 
SOCIALIST  LEADERS  ATTEMPTED  TO  USE  THE 
BANK  OF  NORTH  DAKOTA  TO  FURTHER  THEIR 
OWN  INTERESTS.  Section  15  says  that  the  bank 
shall  not  make  loans  or  give  its  credit  to  any  individ- 
ual, association  or  private  corporation.  In  other  words, 
no  money  was  to  be  loaned  except  on  first  farm  mort- 
gages and  warehouse  receipts.  How  did  the  Socialist 
leaders  try  to  get  around  that  Jaw?  Very  simple.  They 
bought  stock — 57  shares  in  the  Scandinavian  American 
Bank  at  Fargo.  IT  DIDN'T  TAKE  ANY 

7V1ONEY  TO  DO  THIS,  because  the  very  stock  they 
bought  they  pat  up  as  collateral  IN  VIOLATION  OF 
THE  BANKING  LAW  OF  NORTH  DAKOTA.  THE 
BANK  EXAMINER  BEING  THEIR  TOOL,  this  viola- 
tion of  the  banking  law  did  not  trouble  them  any. 

NVxl   they  proceeded  to  make  loans  from  the  Scan- 
dinavian American  Bank  of  Fargo. 

X^xt  in  as  much  as  the  Scandinavian  American  Bank 
could  not  loan  to  exceed  $9,000  to  any  private  corpor- 
ation, they  proceeded  to  have  their  clerks,  lawyers, 
dummies,  bookkeepers,  and  other  employees,  SOME 
OF  THEM  WYS,  SOME  OF  THEM  MEN  SCARCELY 
WORTH  A  DOLLAR.  SOME  OF  THEM  NON-RESI 
DKNTS,  sign  ap  notes  alt  the  way  from  seven  to  nine 
thousand  dollars  apiece,  and  take  the  money  from  the 
Scandinavian  American  Hank  and  leave  the  uote~the 
note  bfciug  endorsed  by  one  of  their  private  corpora - 
tjona,  of  little  or  no  financial  responsibility. 

In   this  way  tJi/»v  soc*i  h-ad  $oOO/K)0  in   r-aMi   out  of 


104  THE  NONP ARTISAN  LEAGUE 

the  Scandinavian  American  Bank  of  Fargo,  and  the 
bank  had  their  notes.  Although  this  was,  of  course,  il- 
legal, IT  WAS  CARRIED  ON  WITH  THE  CONNIV- 
ANCE OF  THEIR  BANKING  DEPARTMENT. 

Next  they  proceeded  to  get  the  deposits  from  the 
Bank  of  North  Dakota.  A  letter  written  by  H.  J. 
Hagen,  President  of  the  Scandinavian  American  Bank, 
to  the  Bank  of  North  Dakota,  shows  that  TOWNLEY 
PERSONALLY  PROMISED  THEM  ONE  HALF 
MILLION  DOLLARS  OF  STATE  FUNDS. 

Next  they  sent  over  a  third  of  a  million  of  these 
BILLS  RECEIVABLE  TO  THE  BANK  OF  NORTH 
DAKOTA,  the  bills  receivable  being  backed  up  by  the 
private  paper  that  I  have  mentioned. 

Next  the  Bank  of  North  Dakota  returned  part  of  the 
bills  receivable  and  the  correspondence  states  that  it 
GAVE  THEM  CREDIT  FOR  A  PART. 

I  attempted  to  find  out,  more  about  the  Bank  of  North. 
Dakota's  dealings  and  as  attorney  general  I  asked  the 
State  Auditor  to  examine  the  Bank  of  North  Dakota 
so  we  would  get  an  honest  examination,  AND  THEY 
REFUSED  TO  LET  THE  AUDITOR  EXAMINE  THE 
BANK,  'and  the  same  HAS  NOT  BEEN  EXAMINED 
BY  ANYBODY  EXCEPT  THEIR  APPOINTEES. 

It  must  be  obvious  to  the  man  with  even  no  experi- 
ence that  the  Bank  of  North  Dakota  cannot.be  success- 
ful if  it  is  filled  with  notes  that  are  valueless.  Getting 
notes  secured  by  post  dated  checks,  from  a  lot  of  clerks 
in  St.  Paul  whether  they  are  clerks  in  a  grocery  store, 
a  newspaper  plant,  or  an  insane  asylum  is  riot  safer 
sound  business.  Three  members  of  our  Supreme  Court, 
Bronson,  Grace  and  Robinson  have  held,  that  post  dated 
checks  are  excellent  security.  I  should  like  to  see  some 
farmers  try  to  buy  Bronson 's  Grace's  .or  Robinson's 
land  on  this  excellent  security,  to-wit,  post  dated  checks 
given  by  men  living  in  Texas,  Oklahoma,  Wisconsin, 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     105 

Iowa,  Kansas,  South  Dakota,  Montana,  Idaho,  Wash- 
ington, Oregon  or  Colorado,  these  checks  being  given 
by  men  whom  they  did  not  know,  that  they  had  not 
seen,  who  might  not  own  property,  and  some  of  the 
checks  over  a  year  past  due.  There  is  not  a  farmer  in 
North  Dakota  who  would  sell  his  farm  for  that  kind  of 
paper. 

These^  checks  in  the  amounts  of  six,  nine,  sixteen, 
eighteen,  thirty- two  or  one  hundred  dollars  would  be 
of  small  value  if  you  had  to  hire  a  lawyer  and  pay  him 
for  his  services  in  collecting  them.  In  the  Scandinavian 
American  Bank  case,  had  I  been  allowed  to  call  wit- 
nesses, I  had  bankers  who  would  have  testified  that 
these  checks  were  worth  not  to  exceed  forty  cents  on 
the  dollar,  and  some  bankers  would  have  testified  that 
they  were  worth  very  much  less.  They  knew  because 
they  had  tried  to  collect  them,  and  TOWNLEY  HIM- 
SELF ONCE  TESTIFIED  UNDER  OATH  THAT 
THEY  WERE  WORTH  ONLY  APPROXIMATELY 
FIFTY  CENTS  ON  THE  DOLLAR, 

T>.  Socialists  prate  about  the  profits  in  the  Bank 
<>f  North  Dakota — why,  if  everything  is  on  the  square 
in  thru  bank,  DID  NOT  THEY,  WHEN  THE  AUDI- 
TOE  <: f AME  TO  EXAMINE  IT,  SAY  TO  THE  AUDI- 
TOk  "YOU,  WHO  ARE  ELECTED  BY  *THB  PEO- 
PLK  TO  EXAMINE  THE  PUBLIC  INSTITUTIONS 
OF  THE  STATK— YOU  ARE  WELCOME,  COME  IN 
ANL  SEE  HOW  WELL  WE  ARE  TAKING  CARE 
OF  THE  PUBLH1  F  [NANCES  TRUSTED  TO  OUR 
CHARGE."  Why  if  everything  was  honestly  conduct- 
ed hy  HONEST  men.  should  they  object  to  having  an 
HONEST  examination  MADE  BY  AN  HONEST  OFFI- 
(  IAL  ELECTED  BY  THE  PEOPLE? 

After  all  of  these  facts  became  public,  the  Socialist 
leaders  had  to  make  a  goat  of  somebody,  so  they  pick- 
ed rut  Wators.  They  said  Waters  was  a  crook,  a 


106  THE  NONP  ARTISAN  LEAGUE 

scoundrel  and  a  blackmailer,  and  after  this,  if  any- 
thing shows  up  wrong  in  the  bank,  they  are  going  to 
hide  behind  Waters — the  man  whom  the  Governor  and 
Commissioner  of  Agriculture  and  Labor  appointed  to 
this  job— HE  IS  TO  BE  MADE  THE  "GOAT",  and 
when  the  farmers  go  to  the  Socialist  leaders  and  com- 
plain, they  will  shrug  their  shoulders  and  say — "IT  IS 
TOO  BAD.  WHEN  WE  APPOINTED  HIM  WE 
THOUGHT  HE  WAS  HONEST,  BUT  WE  HAVE  AL- 
READY TOLD  YOU  IN  OUR  NEWSPAPERS  THAT 
HE  IS  A  CROOK,  A  SCOUNDREL  AND  A  BLACK- 
MAILER." 


ITS  BIRTH.  ACTIVITIES  AND  LEADERS     107 


CHAPTER  VIII 

HOW   THE   SOCIALISTS  KEEP   THEIR  FRIENDS 
OUT  OF  THE  PENITENTIARY. 

Anyone  who  has  read  the  Socialist  papers  knows 
what  a  huge  factor  in  their  propaganda  is  the  state- 
ment that  when  Big  Business  controls  the  Govern- 
ment it  passes  laws  under  which  they  put  their  oppon- 
ents in  the  penitentiaries,  and  that  if  by  some  unlucky 
accident  one  of  their  own  class  is  convicted  and  put  in 
jail  that  the  OFFICERS  IN  CHARGE  WILL  SOON 
PARDON  OR  PAROLE  THAT  FRIEND.  A  banker, 
they  say,  in  a  government  run  by  bankers,  seldom  goes 
to  jail  and  if  he  does  he  DOES  NOT  STAY  THERE 
LONG.  The  rabid  I.  W.  W.  speaker  always  says  "The 
wealthy  man  can  commit  any  crime  and  get  away  with 
it  while  us  poor  devils  are  thrown  in  for  committing 
no  crime  at  all".  Naturally  people  wonder  whether 
the  socialists  follow  that  theory  and  WHETHER  THE 
SOCIALISTS  PROTECT  THEIR  FRIENDS  HERE 
IN  NORTH  DAKOTA. 

As  Attorney  General,  it  has  been  my  privilege  to 
find  out  how  justice  is  meted  out  in  this,  the  New 
GALLEY  L'!)— 

Day  in   Xorth  Dakota,  and  I  just  wish  to  give  you    a 
few  samples  of  Socialistic  justice. 

Down  in  Bowman  County  there  was  a  County 
Treasurer  by  tli<>  name  of  Ted  Austin.  He  became  a 
rabid  follower  of  the  Socialist  gang,  one  of  the  right 
hand  men  of  Charles  Joyce,  the  present  Sheriff  of 
Bowman  County  and  one  of  the  candidates  for  Presi- 
dential elector  to  the  last  National  Republican  Con- 
vention. Like  a  great  many  of  the  men  whom  the  So- 
cialists include,  Austin  also  spent  money — in  fact  he 
spent  so  much  that  his  salary  couldn't  quite  furnish 


108  TILE  XONP  ARTISAN  LEAGUE 

enough  of  it.  The  result  was  that  he  began  usiijir  I 
County's  money.  It  naturally  followed  that  there  were 
false  entries  in  the  books  and  the  shortage  soon  to- 
taled $8,865.71. 

Some  of  the  citizens  demanded     an     investigation. 
Under  the  laws  of  the  State  when  anyone  wishes  an 
examination  made  of  any  county  or  municipality  they 
apply  to  the  Bank  Examiner.  The  Bank  Examiner  of 
North  Dakota,  appointed  by  Governor  Frazier,  is  0. 
E.  Lofthus.  (He  ran,  several  years  ago,  for  Treasurer 
of  North  Dakota  on  the  Socialist  ticket.)     The  B 
Examiner  sent  a  deput}^  down  there  to  check  up  t' 
friend  Austin,  and,  it  is  alleged  that     the     examiner 
found     a    shortage     of    approximately    $150.00'.     Not- 
a  word  was  breathed  about  it.       Austin  it  is  said  gave 
his     cheek     for       that     amount      and      the     matter 
was  hushed  up.       There  were  no     criminal     actions 
taken  against  the  man  who  had  no  children  and  who 
was  not  living  with  his  wife,  so  there  could  be  no  de- 
fense of  protecting  his  family.  Nevertheless  there  was 
nothing  done.  • 

Later  a,  complaint  was  made  that  the  Examiner  had 
not  made  a  thorough  examination  with  the  result  that 
the  State  Auditor  was  appealed  to.  The  State  Auditor 
was  a  man  who  left  the  League  after  he  saw  the  So- 
cialist control.  He  sent  his  deputy,  a  man  by  the  name 
of  Snyder,  down  there  to  investigate  the  matter  and 
found  a  total  shortage  of  #S,tf  (15,7.1.  Austin  threw  up 
both  hands  and  plead  guilty.  His  eriines  were  over- 
whelmingnot  one  crime  but  a  series  of  crimes  which 
extended  over  years — cool,  deliberate  embezzlement 
and  faking  of  books.  Was  Austin  sent  to  the  peniten- 
tiary? He  was  not.  The  Judge,  who  had  also  been  ap- 
pointed by  Governor  Frazier,  solemnly  announced  that 
he  was  sentenced  to  three  years  in  the  penitentiary 
and  just  as  solemnly  announced  that  in  as  much  as 


ITS  BIRTH,  ACTIVITIES  AND  LEAKERS     109 

Austin  had  no 'money  (having  spent  it  all)  it  would, 
be  necessary  that  he  remain  outside  until  he  could  earn 

•aise  some  so  that  Austin  could  pay  back  the  thou- 
sands of  dollars.  A  suspended  sentence  was  the  result 
,-mil  .AUSTIN  NEVER  SAW  THE  PENITENTIARY, 
THE  MATTER  ENDING  IN  EXACTLY  THE  WAY 
A  LOT  OP  THE  CITIZENS  STATED  AND  PROPH- 
ESIED AT  THE  TIME  THAT  HE  WAS  ARRESTED. 
Another  case  is  that  of  Pierce  Egan,  a  banker,  who 
operated  the  First  State  Bank  of  Jud;  K  ae  from 

the  same  town  that  Townley  comes  from,  the  town 
which  was  also  the  home  of  ex-Congressman.  John 
Baer,  former  Bank  Examiner  and  later  Manager  of  the 
"Bank  of  North  Dakota,  J.  R.  Waters  and  of  the  So- 
cialist Land  Appraiser  Seaman  A.  Smith.  Egan  made 
false  bank  statements,  issued  certificates  of  deposits 
when  there  was  no  money  placed  in  the  bank  for  them 
to  he  issued  on,  and  in  order  to  deceive  the  bank  ex- 

iner,  numbering  them  hundreds  of  numbers  ahead 
so  that  they  would  not  be  discovered.  By  accident  a 
banker  out  in  Utah  got  hold  of  some  of  these  certifi- 

•s  of  deposit  with  the  result  that  there  was  an  in- 
vestigation and  a  shortage  discovered  of  approximate- 
ly $35,000.00. 

Assistant  Attorney  General  Sheets,  at  the  first  rumor 
went  down  there  with  the  result  that  Egan  was  ar- 
cd.  charged  with  the  crime  of  embezzlement.  Egan 
of  course,  furnished  bail  and  a  little  later  wrote  the 
following  letter,  with  the  penitentiary  staring  him  in 
the  face : 

"Bingham  Canyon,  Utah. 

Feb.  23,  1920. 
Mr.  J.  K.   Waters. 
Bismarck,  N.  D. 
Dear  Sir.— 

I  am  endeavoring  to  get  a  job  as  editor  and  man 


110  THE  NONPARTISAN  LEAGUE 

of  a  newspaper  for  the  Nonpartisan  league,  and     as 
they  require  references  I  have  referred  them  to  you. 

I  wish  you  would  write  Mr.  Sam  S.  Haislet,  Box 
897,  Fargo,  and  tell  him  what  you  know  about  my  abil- 
ity as  a  newspaper  man. 

I  am  now  a  firm  believer  in  the  principles  of  the 
Nonpartisan  League.  I  am  about  to  renounce  the  faith 
and  take  up  socialism. 

Very  truly  yours, 

Pierce  Egan." 

luid  Pierce  Egan,  with  the  penitentiary  staring  him 
in  the  face  in  North  Dakota,  was  sent  out  to  Idaho. 
HE  GOT  the  NEWSPAPER  TO  RUN  JUST  AS  HE 
REQUESTED— this  jailbird  sent  to  Idaho  by  Town- 
ley's  outfit  to  instruct  the  people  of  Idaho  along  good 
Socialist  lines. 

And  out  here  in  North  Dakota,  Egan's  letter  to 
Waters,  as  Manager  of  the  Bank  of  North  Dakota,  ap- 
pornted  by  Frazier  at  the  request  of  Townley  and  his 
agents,  convinced  Frazier.  Evidently  Frazier  figured 
that  this  crook  and  embezzler— NOW  THAT  HE  WAS 
TAKING  UP  SOCIALISM— would  become  a  desirable 
ally  and  if  he  would  let  him  go  free,  he  would  help 
TWnley  and  Lemke  and  the  other  Socialists  in  their 
organization. 

XD  SO  FRAZIER,  THE  MAN  WHO  PRATES  SO 
MUCH  OF  THE  EQUAL  ENFORCEMENT  OF  THE 
LAW,  WROTE  A  PERSONAL  LETTER  TO  JUDGE 
FliED  GRAHAM  OF  ELLENDALE  ASKING  THE 
JUDGE  TO  BE  LENIENT  WITH  EGAN.  Frazier  evi- 
dently didn't  set  forth  in  his  letter  convincing  reasons 
why  this  crook  who  had  just  turned  Socialist  should 
have  any  leniency,  why  an  embezzler  of  thirty-five 
thousand  dollars  should  not  go  to  the  penitentiary — 
while  immature  boys,  for  stealing  articles  worth  a  few 
hundred  dollars  should  go.  And  Judge  Graham  right- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     111 

• 

fully  sentenced  Egan  to  the  penitentiary  for  one  year. 

Did  this  phase  Frazier? 
No,  sir. 

The  Socialists  had  the  trump  card  up  their  sleeves. 

The  Attorney  General,  the  District  Court  and  the 
Judge  could  be  defied  with  impunity — here  was  one  of 
their  own  kind  who  had  just  turned  Socialist  headed 
toward*  the  penitentiary. 

THE  DAY  EGAN  WAS  TO  GO  TO  THE  PENI- 
TENTIARY, THE  GOVERNOR  HAD  HIS  PAROLE 
BOARD  IN  SESSION,  which  hoard  consists  directly 
and  indirectly  of  his  appointees.  Egaii  didn't  linger 
long  at  the  penitentiary.  IN  LESS  TIME  THAN  IT 
TAKES  TO  WRITE  THIS,  THE  PAROLE  BOARD 
HAD  PAROLED  MR.  EGAN,  and  Egan  is  now  in 
Bingham  Canyon,  Utah,  preaching  Socialism.  But  the 
state  of  North  Dakota  had  to  make  good  the  shortage 
out  of  the  State  Bonding  Fund,  and  the  people  indi- 
rectly have  to  pay  it. 

A  short  time  afterward,  in  the  Scandinavian  Amer- 
ican Bank  ease  about  which  the  Socialist,  Charles  Ed- 
ward Kussell.  so  feelingly  wrote,  AND  ABOUT 
WHICH  HE  KNEW  NOTHING  EXCEPT  WHAT 
WAS  TOLD  HIM,  among  other  things  I  arrested  the 
president  H.  J.  Hagen,  and  the  cashier  P.  R.  Sherman. 
The  Hagen  trial  came  up  and  lasted  approximately 
ten  days.  It  was  tried  before  Judge  M.  J.  Englert  of 
Valley  City,  a  Frazier  appointee.  Although  H.  J.  Ha- 
gen is  unquestionably  a  man  with  a  rotten  reputation. 
u  crook  in  the  fullest  souse  of  the  word,  yet  the  So- 
cialist press,  because  he  was  one  of  their  kind,  lauded, 
defended  jind  fought  his  battle  for  him. 

The  jury  was  composed  as  follows: 

Robert  Gibb,  Fargo,  N.  D Plumber 

Ben   Spencer,  Fargo,  N.  D Mechanic 

R.  A.  Miller.   Hunter.   N.  D Farmer 


112  THE  NONPARTISAN  LEAGUE 

F.  Solberg,  Harwood,  N.  .D Farmer 

Ed.  Sautebin,  Davenport,  N.  D Farmer 

Thomas  Peterson,  Warren,  N.  D Farmer 

A.  A.  Pearson,  Argusville,  N.  D Farmer 

G.  A.  Stevens,  Tower  City,  N.  D Agt.  Oil  Co. 

Charles  Simons,  Fargo,  N.  D Railroad  Switchman 

John  Flatt,  Fargo,  N.  D Farmer 

Milton  Streck,  Alice,  N.  D ^ Farmer 

William  F.  Piper,  Fargo,  N.  D Auto  Dealer 

Hagen       was       defended       by         ex-Congressman 

James  Manahan  of  St.  Paul,  one  of  Townley's  person- 
al lawyers,  by  local  attorneys  at  Fargo,  and  also  by 
Governor  Frazier's  attorney  William  Lemke  of  the 
executive  committee  of  the  "League."  Hagen  Is  law- 
yers were  evidently  so  afraid  of  his  being  cross  exam- 
ined that  they  didn't  dare  let  him  get  on  the  witness 
stand. 

To  the  astonishment  of  Hagen  and  his  lawyers,  the 
farmer-labor  jury  after  deliberating  three  or  four  hours 
rendered  a  verdict  of  GUILTY.  Did  Judge  En- 
glert,  who  only  a  few  weeks  before  had  been  appoint- 
ed judge  by  Governor  Frazier  sentence  Hagan  to 
tin  penitentiary  f  NOT  UNDER  THE  PRESENT 
ADMINISTRATION  OF  JUSTICE  IN  NORTH  DA- 
KOTA. Hagen 's  chief  attorney  Manahan  immediately 
madr  a  motion  to  set  aside  the  verdict  of  the  jury  on 
various  grounds,  among  them  being  that  the  audience 
had  prejudiced  the  jury,  etc.,  objections  to  which 
the  ordinary  Judge  would  not  have  listened  in  pa- 
tience for  five  minutes.  Yet  this  Judge  solemnly  made 
the  announcement  that  he  would  take  the  mat- 
ter under  advisement,  and  the  lawyers  could 
present  briefs,  etc.  This  was  in  November,  the  rest  of 
November  went  by,  December  passed  into  oblivion, 
1920  rolled  around,  January,  February  and  March 
and,  lo  and  behold,  in  April  the  Judge 


ITS  B1KTH,  ACTIVITIES  AND  LEADERS     113 

announced  that  there  had  been  error  in  the  trial  (al- 
though he  was  presumably  judge  to  keep  error  out) 
and  that,  after  all,  the  verdict  had  been  a  grave  mis- 
take and  that  he  would  not  compel  Hagen  to  appeal 
to  the  Supreme  Court,  but  that  he  would  correct  the 
matter  himself.  He  set  aside  the  verdict  of  the  twelve 
jurymen  and  COMPELLED  THE  STATE  OF  NORTH 
DAKOTA  TO  EITHER  TRY  TOWNLEY'S  TOOL, 
H.  J.  HAGEN  ALL  OVER  AGAIN  OR  LET  HIM  GO 
FREE.  During  the  course  of  that  trial,  the  rumor 
came  frequently  to  the  prosecuting  officers  that  Ha- 
sen  was  boasting  that  he  would  never  go  to  the  peni- 
tentiary. He  and  his  lawyers  made  good  their  word. 
He  isn't  there  yet,  and  with  the  League  running  its 
"Vice  President"  for  Attorney  General,  (he  was  also 
one  of  the  attorneys  for  Hagen)  can't  you  just  imag- 
ine how  Hagen  is  trembling  in  his  shoes1 

Hagen  at  the  time  he  was  prosecuted  had  been  ap- 
pointed by  Governor  Fra/ier  as  chairman  of  the  State 
Guarantee  Fund,  which  is  a  fund  raised  by  a  tax  of 
one-twentieth  of  one  per  cent  on  every  state  bank,  so 
that  the  money  of  every  man,  women  and  child  will  be 
ivrot^-ied  in  the  bank.  That  is,  it  protects  it  only  to 
the  extent  of  his  fund;  the  state  does  not  guarantee  the 
deposit  itself.  After  the  jury  of  farmers  and  laboring 
inei;  convicted  llagen,  did  THE  GOVERNOR  RE- 
MOVE HAGEN  FROM  BEING  CHAIRMAN  OF 
TUTS  IMPORTANT  TRUST?  HE  DID  NOT,  but  on 
the  contrary,  when  Hagen 's  term  expired,  THE  GOV- 
ERNOR PROMPTLY  RE-APPOINTED  HIM—  FRA- 
ZIEK  WAS  OH  SO  MUCH  WISER  THAN  THE  FAR- 
MERS WHO  HEARD  THE  EVIDENCE ! 

I1;  :n  Knox,  in  Benson  County,  there  was  a  banker 
by  the  name  of  David  II.  Ugland.  He  went  wrong  in 
the  bank  with  the  result  that  he  was  short  somewhere 
between  two  or  three  hundred  thousand  dollars.  He 


114  THE  NONP  ARTISAN  LEAGUE 

left  the  state  arid  went  to  Minneapolis;  detectives 
down  there  shadowed  him.  Later  he  returned  to  North 
Dakota  and  plead  guilty  before  Judge  Buttz  to  three 
counts,  namely : 

1.  Making  with  intent  to  defraud,   a  false   entry, 
said  entry  a  material  entry  in  the  record  of  the  Se- 
curity Bank  of  Knox,  a  banking  corporation  orgaiiizr 
ed  and  existing  as  such  under  the  laws  of  the  State  of 
North  Dakota; 

2.  Knowingly  accepting  money  for  deposit  in  an 
insolvent  bank,  while  being  cashier  of  said  bank  and 
knowing  of  such  insolvency. 

3.  Embezzlement. 

The  Judge  sentenced  him  to  a  term  of  five  years  on 
the  first  count;  three  years  and  six  months  on  the  sec- 
ond count,  and  three  years  on  the -third  count,  all  be- 
ginning December  17,  1918. 

Ugland,  however, 'was  a  friend  of  -I.  I\.  \Var-M-. 
Bank  Examiner,  and  later  Manager  of  the  Bank  of 
North  Dakota. 

No  sooner  had  Ugland  gone  to  the  penitentiary, 
than  I  received  word  that  they  were  going  to  parole 
him  as  soon  as  the  law  would  allowr,  which  was  in 
eight  months  and  seventeen  days.  As  Attorney  Gener- 
al, I  wrote  a  letter,  to  every  member  of  the  Parole 
Board  requesting  permission  to  appear  before  the  Pa- 
role Board  to  protest  against  the  parole  of  Ugland. 
Was  I  notified  when  the  Board  met?  I  was  not.  And 
when  the  eight  months  and  seventeen  days  were  up. 
Ugland  walked  out  of  the  penitentiary. 

Later,  in  violation  of  the  state  parole  laws,  he  was 
outside  of  the  borders  of  North  Dakota,  to  Minneapo- 
lis; and  still  later,  again  in  violation  of  the  state  pa- 
role laws,  he  became  intoxicated,  fell  down  stairs  in 
one  of  the  leading  hotels  in  North  Dakota,  and  brok*r 
his  nose. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS    115 

As  Attorney  General,  I  made  application  to  the 
State  Parole  board  to  revoke  his  parole  and  have  him 
sent  back  to  the  penitentiary.  After  two  postpone- 
ments, I  finally  got  the  matter  up  before  the  Parole 
Board,  and  afer  much  debate,  the  members  of  the  Pa- 
role Board  decided  that  it  would  be  to  the  interests  of 
the  creditors  to  leave  Ugland  outside  of  the  peniten- 
tiary. Though  thoroughly  disgusted  I  looked  up  Ug- 
land's  record,  it  developed  that  he  had  stolen  four 
loads  of  flax  while  he  was  out  on  bail,  and  I  had  him 
arrested  on  this  charge.  The  case  came  up  in  Benson 
County  before  a  jury  of  his  fellow  citizens,  with  the 
result  that  he  was  convicted  and  sentenced  to  one  year 
in  the  penitentiary.  Ugland  appealed  to  the  Supreme 
Court  with  the  result  that  he  is  now  out  on  Bail.  Al- 
though Ugland  plead  guilty  to  these  crimes;  he, 
through  his  Socialist  friends,  was  compelled  to  serve 
only  eight  mouths  and  seventeen  days,  while  Charlie 
Hamilton,  a  negro  from  Minot  without  any  friends, 
got  six  years  for  stealing  $46.00.  although  he  claimed 
IM-  lidn't  even  use  a  gun  in  the  process. 

•  '\t«Mit  of  this  book  does  not  permit  the  taking 
up  of  the  eases  in  detail.  Time  and  time  again,  the 
Go V" i'ii or.  a  tool  in  the  hands  of  those  who  made  him 
Governor,  has  used  his  power  to  interfere  with  jus- 
tice. 

But  there  is  one  case  which  will  never  eease  to 
cause  amazement  to  attorneys  and  well  informed  lay- 
men. 

r  was  when  the  Scandinavian  American  Bank 
\va^  closed,  and  the  Supreme  Court,  without  any  no- 
tier  to  the  Attorney  General  and  Secretary  of  State, 
who  closed  the  bank  and  appointed  a  Receiver  who 
pui  up  a  $10,000.00  bond,  issued  an  order  ordering 
them  to  turn  the  bank  over  to  the  Bank  Examiner,  O. 


316  THEN  ONPAETISAN  LEAGi 

.oftus.  I,  under  oath,  filed  the- following  appl; 
to  have  their  order  modified: 

SCANDINAVIAN   AMERICAN    BANK   PETITION 
IN   THE  SUPREME  COURT  OF  THE   STATE  OF 
NORTH     DAKOTA 

The  State  of  North  Dakota,  on  the  relation  of  O.  E.  Lofthmr 
as  State  Bank  Examiner,  The  Scandinavian  American  Bank 
of  Fargo,  a  corporation,  and  H.  J.  Hagen,  N.  G.  Eggen,  .Lars 
Christian=on,  H.  L  Bolley,  Spurgeon  Odell,  Emil  J.  Headland 
adn  H.  P.  Holmes,  Directors  and  stockholders  of  the  Scandin- 
avian American  Bank  of  Fargo,  and  R.  R.  Sherman,  Cashier 
and  Stockholder, 

Petitioners  and  Relators. 
— vs — 

William  Langer.  Attorney  General,  and  as  an  individual,  ami 
as  a  member  of  the  State  Banking  Board,  and  Thomas  Hall 
Secretary  of  State  and  as  a  member  of  the  State  Banking 
Board  and  as  an  individual,  and  Albert  E.  Sheets,  Jr.,  Assist- 
ant Attorney  General,  and  as  an  individual,  an  P.  E.  Hallor- 
son,  as  pretending  receiver  t)f  said  bank  and  a?  an  individual, 

Defendants  and  Respondents 
PETITION    FOR   MODIFICATION 

Comes  now  Wiliam  Langer,  as  Attorney  General  of -the 
State  of  North  Dakota,  and  as  one  of  the  respondents  in  the 
above  entitled  action  and  respectfully  petitions  your  Honor- 
able Court  for  a  modification  of  its  Order  dated  October  15. 
13<19,  for  the  following  reasons: 

1.  That  by  the   order  of  October  15th,   1919.   respondents 
were  given  until  October  23rd,  1919.  'by  your  Honorable  Court 
in  which     to  file  additional  affidavits,  that   since  that  timp 
affiant  and  his  assistants  "have  bepn   endeavoring  to   secure 
affidavits  which  would   T3re.?ent   material   facts   in  the  above 
entitled  matter  to  your  Honorable  Court,  but  that  such  efforts 
have  been  unavailing:     that  there  are  some  five  or  six  per- 
sons whose  testimony  under  oath  is  material,  and  that  some 
of  these   persons   have   refuse-d   to   give    affidavits,    and    still 
others  have  indicated  that  they  would  refuse  to  give  affida- 
vits, but  this  affiant  has  reason  to  believe  and  does  believe 
that  such  persons  if  subpoenaed  before  any  district  court  of 
this  state  will  tell  the  truth,  and  will  testify  to  material  \ 
which  this  affiant  varily  believes  should  be  in  the  pos-se^sion 
of  this  Honorable.  Court. 

2.  Affiant   further    believes   that    as    a    result    of   obtaining 
such  testimony  additional  evidence  will  be  adduced  which  will 
make  thf>  conviction  of  H.  J.  H=»~an  and  P.  R.  Sherman  offi- 
cers of  the   Scandinavirn   American    Bank   more   certain,   and 
further  affiant  has  reason  to  believe  and  does  believe  that  if 
such  testimony  were  taken  upon  ordsr  of  this  Honorable  Court 
that  evidence  will  be  qiven  which  will  justify  other  prosecu- 
tions arising  out  of  the  facts  relating  to  the  condition  of  the 
Scandinavian  American  Bank. 

WHEREFORE,  affiant  prays  this  Honorable  Court  for  a 
modification  of  its  order  of  October  15.  1919,  in  this  that  =?airl 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     117 

order  may  provide  for  oral  tesitmony  to  be  some 

proper  court  designated  by  your  Honorable  Court-In  the  above 
entitled  matter. 

William  Langer, 
Attorney  Gen* 


OP  NORTH  DAKOTA, 
COUNTY  OF  BURLBI 

William  Langer, 'being  first  duly  sworn,  desposes  and 
that  he  is  the  duly  elected,  qualified  and  acting  Attorney 
General,  of  the  State  of  North  Dakota,  and  as  such  is  the 
Attorney  for  the  Defendants  ard  Respondents  in  the  above 
entitled  action;  that  he  has  read  the  above  and  foregoing 
petition  and  knows  the  contents  thereof,  and  that  the  same 
is  true  to  the  best  of  his  knowledge,  -information  and  belief. 

William  Langer, 

Subscribed  and  and   s ,.  before  me  this  21st,  day  oi 

October,  1919. 

L.    O.    RUDSER, 

NOTARY  PUB.LJC,  Burleigh  County.N.  D.. 
My  Commission  Expires  Oct.  5,  1920. 
(SEAL) 


From  the  above,  you  will  note  that  I  swore  that  if 
they  would  let  me  call  witne'sses  in  that  case  that  I 
would  not  only  put  Hagen  and  Sherman  in  the  peni- 
tentiary, BUT  THAT  I  WOULD  ALSO  PUT  IN  THE 
PENITENTIARY  A  WHOLE  LOT  OF  OTHER  MEN 
CONNECTED  WITH.  THE  CRIME.  .The  Supreme 
Court  through  Justices  Hronson,  Grace  and  Robinson, 
two  judges  (Christiansen,  and  Birdzell)  dissenting,  in 
spite  of  my  sworn  statement,  DENIED  ME  THE 
RIGHT  TO  CALL  WITNESSES  WITH  THE  RESULT 
THAT  THE  MEX  WHOM  I  HAD  SWORN  WERE 
GUILTY  OF  CRIME.  ESCAPED.  Justices  Branson, 
Grace  and  Robinson  didn't  lake  the  trouble  to  . 
out  whether  these  men  \vere  lenders  of  tin-  Nouparti- 
san  league  or  not.  They  didn't  slop  to  rind  out  about 
the  $700,000.00  of  notes  with  whieh  the  slate  had  b< 
flooded.  And  it  \\as  about  thai  time  that  !  issued 
the  famous  statement  that  Townley,  Lemke  and  Woo4 
and  the  other  leaders  claimed  was  contempt  of  court. 
The  statement  shows  that  although  there  are  ineu  in 


118  THE  NONPARTISAN  LEAGUE 

North  Dakota  who  aren't  afraid  of  me — that  I  in  turn 
am  not  afraid  of  them. 

Here  is  a  part  of  the  statement: 

The  governor,  the  state  bank  examiner  and  some 
other  state  officials  can  line  up  with  crooks  and  use 
their  official  positions  to  protect  them  if  they  wish.  As 
for  myself,  I  shall  keep  on  trying  unfalteringly  and 
faithfully  to  serve  the  people — farmers,  bakers,  bank- 
ers and  boot-blacks ;  white  or  black  alike. 

I  was  not  born  to  be  a  subservient  tool  of  a  political 
boss. 

The  banking  board  is  the  people's  protection  against 
thieves,  embezzlers,  crooks  and  scoundre's,  and  North 
Dakota  never  needed  an  honest  administration  of 
banking  laws  more  than  now. 

The  report  of  the  two  deputy  bank  examiners  states 
thai  even  aside  from  the  so-called  ''farmer"  enter- 
prises, the  bank  is  insolvent. 

The  state's  banking  laws  have  been  continuously,, 
openly  and  insolently  flouted  with  contemptous  defi- 
anc-  . 

The  time  has  come  for  a  showdown  !  If  To \\-iiley  and 
the  men  whom  he  has  caused  to  be  appointed  to  igffice, 
are  above  the  law,  let  us  find  it  out. 

Ordinarily  I  do  not  make  any  evidence  I  have  in 
criminal  cases  public — I  will  make  no  more  public  in 
this-  case,  if  I  can  avoid  it.  When  the  crooks  are  he- 
fort,  a  farmer  jury  and  the  facts  are  presented,  the 
jury  will  do  the*rest. 

WILLIAM  LANGER, 
Attorney  General, 

THE  JURY  DID' 

The  crooked  crook,  Hagen,  president  of  Townley'a 
and  Lemke's  Bank,  was  convicted. 

Frazier  didn't  remove  him  as     chairman     of     the 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     111-' 

* 

Guarantee  Board.   Englert,  appointed  by  Frazier.   set 
aside  the  conviction ! 

Frazier  REAPPOINTED  Hazen  to  tlio  chairman  of 
the  Guarantee  Board. 

And  when  men  come  to  me  and  say,  ''Why,  if  you 
say  that  there  arc  a  lot  of  crooks  at  large  in  North 
Dakota,  don't  you  arrest  them?"  I  am  wearily  tempt- 
ed to  say,  "What  is  the  use?"  And  I  have  arrested 
none  and  will  not  even  try  Sherman,  the  cashier,  un- 
til I  find  out  whether  in  North  Dakota  when  the  tool 
of  the  Socialists  Ha/en  is  again  on  trial  in  November 
— he  backed  by  Towniey,  Frazier  and  the  rest,  is 
STRONGER  THAN  THE  RIGHT  ARM  OF  JUSTICE. 

THE  SECRET  CAUCUS 

The  question  is  frequently  asked  me,  "How  does  it 
happen  that  the  Socialists  are  able  to  put  through  their 
program  when  the  Legislature  of  the  State  is  com- 
posed of  hard  headed  farmers  who  would  naturally  b^ 
opposed  to  socialism. 

Of  all  the  statements  that  were  made  during  the 
campaign,  none  was  received  by  the  people  of  North 
Dakota  with  greater  incredulity  than  the  one  that 
Towniey  and  Lernke  and  their  bunch  of  socialists  had 
absolute  control  of  the  Legislature  in  North  Dakota. 
Unless  one  has  been  in  the  secret  caucus — not  the  open 
house  caucus  which  the  members  so  urgently  invit- 
ed their  farmer  neighbors  to  attend — but  the  executive 
caucus,  the  real  secret  caucus,  until  one  has  seen  that 
"operated"  and  has  seen  what  has  transpired  before 
even  the  secret  caucus  meets,  till  then  T  say,  no  one  is 
qualified  to  discuss  the  secret  caucus. 

The  secret  caucus  is  made  up  of  those  members  of 
the  legislature  elected  by  the  League  who  have  sig 
an  agreement  to  go  into  a  secret  caucus  and  there  abide 
by  the  vote  of  the  majority  of  that  caucus. 

Even  before  the  agreement  is  signed,  weeks  before 


120  THE  NONP ARTISAN  LEAGUE 

* 

the  legislature  convenes,  the  Socialists  have  done  their 
work  thoroughly  and  this  work  has  elected  the  men 
sent  to  the  legislature.  Do  they  represent  the  real 
farmers  of  North  Dakota?  Answer,  They  do  not. 

It  is  a  well  known  fact  that  on  a  jury  one  strong  man 
often  sways  the  eleven.  The  Socialists  have  taken 
advantage  of  this  psychological  circumstance.  Here  in 
North  Dakota  when  the  League  was  organized,  approxi- 
mately eight  thousand  people  were  socialists  and  voted 
the  socialist  ticket. 

Townley,  AS  STATE  ORGANIZER  FOR  THE  SO- 
CIALIST PARTY,  KNEW  THE  LEADING  SOCIAL- 
IST SPEAKERS  AND  AGITATORS  T>T  yoRTH  DA- 
KOTA. He  knew  the  leaders  of  the  eight  thousand  so- 
c.ialists  in  this  state.  When  a  member  of  the  legisla- 
ture was  to  be  voted  upon  in  Kidder  Comity.  Townley 
wanted  the  socialist  Rollin  Weld  nominated  and  he 
was  elected.  In  Stutsman  County  there  was  a  Social- 
ist barber  by  the  name  of  O'Brien.  He  was  also  elect- 
ed t<>  the  Legislature.  In  Billings  County  a  Socialist 
farmer,  Gus  Wog  was  nominated  and  elect ed.  In  Ward 
Conn Ty  a  Socialist  by  the  name  of  -lohn  Fleckten  w<^ 
nominated  and  elected  for  the  Senate.  In  Oliver  Coun- 
ty it  was  the  Socialist  R,  IT.  Walker  who  was  selected. 
In  Boitineau  County  L.  L.  Stair,  who  was  not  only  a 
socialist,  but  boasted  of  the  fact  that  he  was  a  mem- 
ber of  the  I.  W.  W.,  was  elected  for  the  House  and  I 
suppose  because  he  was  an  I.  W.  W.  Townley  thought 
him  so  well  qualified  that  he  was  made  Speaker  of 
Hous-  of  Representatives.  These  men  were  nominated 
because  Townley  had  the  eight  thousand  socialists  well 
organized. 

The  farmer  in  North  Dakota  has  usually  a  retiring 
disposition.  HE  IS  NOT  AN  OFFICE  SEEKER.  AS 
A  GENERAL  RULE,  THE  BETTER  OFF  A  FARMER 
IS  THE  MORE  HE  AVOIDS  PUBLIC  OFFICE.  And 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     121 

so  it  was  very  easy  where  seventy  five  or  eighty  farm- 
ers met  at  a  county  convention  for  five  or  six  loud 
mouthed  socialists  to  nominate  one  of  their  fellow  so- 
cialists for  the  legislature  with  the  full  concurrence  of 
the  other  farmers  at  the  county  convention. 

These  kind  of  men  were  nominated  and  elected. 

Townley  himself  told  me  one  day  that  there  wasn't 
a  man  in  the  whole  lot  of  average  intelligence  except 
Dell  Patterson  of  Renville  County  and  he  added,  "If 
Patterson  had  had  an  education  he  would  have  been- 
some  fellow.*' 

WHEN  FACE   TO  FACE  WITH     THESE     MENV 
TOWNLEY  FAWNS,    CAJOLES,   FLATTERS   AND 
CONFIDES  IN  THEM.  BEHIND  THEIR  BACKS  HE 
RIDICULES,  DEGRADES,  HOLDS  UP     TO     CON- 
TEMPT AND  DESPISES. 

In  the  eastern  part  of  the  state,  along  what  is  known 
as  the  Red  River  Valley,  there  are  practically  no  So- 
cialists. In  these  counties  as  a  general  rule  "weak" 
men  are  selected — men  who  will  not  lead  a  fight.  The 
result  is  that  when  the  legislators  get  together  that 
74  or  75  men  out  of  the  113  House  members  are  either 
Socialists,  radicals  or  fellows  without  any  special 
strength  to  LEAD  A  FIGHT. 

In  addition,  a  great  many  of  these  men  are  on  the 
pay  roll  either  of  the  League,  the  Consumers  United 
Stores  Company,  which  is  an  adjunct  of  the  League, 
the  Publishers  National.  '  Service  Bureau.  or 
some  other  concern  controlled  either  directly  or  indir- 
ectly by  Townley,  Lemke  or  Wood  or  their  tools.  The 
result  is  that  these  men  expect,  as  soon  as  they  are 
through  with  the  Session  that  they  will  go  back  on  the 
pay  roll  of  the  same  concern,  with  the  same  salary  or 
better  than  before  the  Legislature  convened,  and  so 
it  happens  that  many  of  these  men,  instead  of  having 
the  best  interests  of  North  Dakota  at  heart,  are  more 


!±2  THE  NONPARTISAN  LEAGUE 

concerned  with  keeping  in  the  good  graces  of  the  heads 
of  the  League.  Nohting,  of  course,  could  be  more 
.letrimental  to  the  welfare  of  the  people  of  the  State 
of  North  Dakota. 

A  few  days  before  the  Legislature  convenes  some 
of  the  league  friends  and  their  trusted  lieutenants  ap- 
pear in  Bismarck.  They  get  rooms  close  together  for 
all  of  the  legislators  whom  they  control.  Three  years 
ago  they  leased  the  entire  Northwest  Hotel.  The  lead- 
ers also  leased  rooms  for  themselves  and  for  their  com- 
mittee meetings.  Last  year  Room  400  in  the  McKenzie 
Hotel  was  selected  by  them.  As  soon  as  the  members 
•ome  in  a  committee  meets  them  with  the  old  political 
proposition  of  getting  them  to  sign  up  the  agreement, 
heretofore  mentioned  part  of  which  is  that  they  agree 
to  go  into  a  secret  caucus  and  to  abide  by  the  will  of 
the  majority,  not  only  on  the  measures  dealing  with 
League  program  but  on  everything  that  comes  up  be- 
fore that  Caucus. 

The  caucus  last  year  met  in  Patterson  Hall  in  Bis- 
marck which  is  annexed  to  the  McKenzie  Hotel.  The 
proprietor  of  the  hotel  to  be  able  to  get  the  members 
of  the  caucus  into  the  caucus  hall  from  the  hotel  with- 
out going  out  onto  the  street,  cut  a  hole  in  the  wall  of 
the  hotel  and  this  hole  was  fitted  with  a  big  iron  door. 
Seeing  the  secret  caucus  operate  is  simply  seeing  a  few 
unscrupulous  men  taking  advantage  of  physchology. 
After  they  meet,  one  of  the  Socialist  leaders  will  com- 
mence the  operation.  Three  years  ago  Arthur  Lo 
Seu«r.  who  ran  for  President  of  the  United  States  on 
the  Socialist  ticket  was  one  of  the  chief  men.  At  the 
last  session  it  was  Walter  Thomas  Mills  who  run  for 
United  States  senator  in  California  m  1916  on  tbe 
Socialist  ticket  against  Hiram  Johnson.  Mills  was, 
nt*  course,  assisted  by  a  lot  of  lesser  lights,  both  Social- 
ists; and  radicals. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     12P, 

Lemke  would  most  probably  introduce  Mills  and  talk 
something  along  this  line : 

"Gentlemen,  you  are  about  1<»  hear  one  of  the  great- 
est men  in  the  world  talk  to  you  about  democracy,  a 
real  genuine  democracy.  This  man  knows  a  hundred 
times  more  than  you  or  I  about  true  democracy,  and 
I  take  pleasure  in  introducing  to  you  the  "Little  Giant 
of  Democracy".  Applause. 

Then  Mills  gets  up.  He  begins  his  talk.  AND  HOW 
HE  CAN  TALK— he  may  not  be  able  to  do  any  work- 
on  a  farm— BUT  HE  CAN  OUT  TALK  ANY  FAR- 
MER. 

"Gentlemen,  the  eyes  of  the  world  are  upon  you. 
Even  over  in  Europe  they  know  the  State  of  North 
Dakota  is  trying  out  a  new  kind  of  social  democracy 
which  will  make  the  rich  poorer  and  the  poor  richer, 
a  democracy  which  will  wipe  out  the  lumber  trust,  the 
doctor  trust  and  every  other  old  kind  of  a  trust.  This 
democracy  will  bury  all  the  trust — it  will  take  the  gov- 
enrment  away  from  these  trusts,  and  put  it  back  in  the 
hands  of  the  people.  Gentlemen,  you  want  to  stick 
with  the  leaders  of  this  organization  and  you  will  have 
a  real  democracy  in  North  Dakota."  By  this  time 
Mills  is  perspiring  a  little — he  too  perspires  while  he 
earns  "his"  money. 

"Look  out  for  big  business  agents.  Don't  talk  to 
other  senators  and  representatives.  They  represent 
"Big  Business."  Avoid  them,  don't  be  seen  with  them. 
They  will  come  to  you  and  smile  but  they  have  the 
interests  of  "Big  Business"  at  heart.  They  smi'e  but 
they  aim  a  dagger  at  your  heart  while  they  smile  ic 
your  face." 

After  listening  for  hours  to  that  kind  of  stuff  in 
which  Mills  and  his  Socialist  associates  in  their  speech- 
es tear  down  progress  without  offering  to  replace  it 
by  anything  constructive  some  tool  af  Townley  and 


124  THE  NONPARTISAN  LEAGUE 

LCD;  '  at  tire  report  of  the  steering 

committee  be  adopt  e-L     The  Socialists  all  yell  "Aye" 
and  those  who  are  not  Soci  oakly  acquiese  and 

thus  THE  RECOMMENDATION  OF  THE  STEER- 
ING COMMITTEE  IS  ADOI?T  OP  COURSE 
EVERY  ONE  OF  THE  STEEJ  OMMITTEE^JS 
HUE  AND  TRIED  TOWNLE  VITE.  THE  STEER- 
.ING  COMMITTEE  HAS  CHARGE  OF  THE  SECRET 
'CAUCUS  UNDER  THE  FOLLOWING  RULES: 

1  Meetings  shall  open  at  7:30  p.  m. 

2  j  shall  he  held  at  8  :00  P.  M. 

3  Visitors  shall  be  allowed  in  the  caucus  only  on 

"Wednesday  and  S;  •    'ics.~ 

4  Tlie  v-at-ariuN  :se  to  be  sergeant 

at -am  is  of  the  caucus. 

5  ALL  BILLS  SHALL  BE  PRESENTED  TO  THE 

STEERING  COMMITTEE  WHICH  SHALL 
AFTER  CONSIDERING  THE  BILLS  REPORT 
ITS  DECISION  ON  SAME  TO  THE  CAU- 
CUS. 

6  Persons,  speaking*  shall  confine  themselves  to  the 
subject  under  consideration. 

7  NO  PERSON  NOT  A  MEMBER  OF  THE  LEGIS- 

LATURE SHALL  BE  ALLOWED  TO  AP- 
PEAR BEFORE  THE  CAUCUS  WITHHOUT 
FIRSJ  OBTAINING  THE  PERMISSION  OF 
EITHER  THE  STEERING  COMMITTEE? 
OR  THE  CAUCUS  ITSELF. 

s  THE  MEMBERS  OF  THIS  .CAUCUS  SHALL 
BE  GOVERNED  IN  THEIR  VOTE  IN 
EITHER  THE  HOUSE  OR,  THE  SENATE  BY 
THE  MAJORITY  VOTE  OF  THIS  CAUCUS. 

*)  Resolutions  shall  take  the  same  course  and  be 
handled  .in  the  same  way  as  bills. 

10  All  committee  metings  shall  be  held  in  the  fore- 
noon. 


ITS  BIRTH.  ACTIVITIES  AND  LEADEK 

11     ALL   CHANGES  MADE   IN  BILLS  IN  COM- 
MITTEE MEET  LNGS  SHALL  BE  BROUGHT 
BEFORE     THE     STEERING     COMMITTEE 
AND  THE  IMPORTANT  CHANGES  ARE 
BE  BROUGHT  BEFORE  THE  CAUCUS  FOR- 
THEIR  DF 

VI     The  clu1'  1'  the  di:  hall 

announce  the  committee  meetings  right  after 

il.call. 

]-}  The  three  chairmen.  AYood,  Stair  and  Maddock, 
shall  be  the  permanent  chairmen;  either  one 
of  these  three  shall  call  the  meeting  to  order, 
after  which  they  shall  appoint  a  chairman  for 
the  evening. 
14  Roberts  rules  of  order  shall  be  the  governing 

rules." 

Obviously  anyone  can  see  the  tremendous  control 
given  to  Town  ley  and  Lcmke  and  Wood  through  Rule 
5  which  is : 

"ALL  BILLS  SHALL  BE  PRESENTED  TO  THE 
STEERING  COMMITTEE  who  shall,  after  consider: 

;ls,  report  their  decision  on  same  to  the  caucus." 
In  other  words,  no  bill,  no  measure  can  be  introduced 
in  the  Legislature  of  North  Dakota  by  any  Nonparti- 
san  who  has  signed  up  for  the  secret  caucus  until  that 
MEASURE  HAS  FIRST  BEEN  PASSED  UPON  BY 
TOAVNLKY  AND  IITS  PICKED  STEERING  COMMIT- 
TEE. If.  for  instance,  any  leaguer  wished  to  intro- 
duce a  bill  that  the  Bank  of  North  Dakota  should  be 
examined,  thai  bill  would  be  first  handed  to  Lemke 
Stair.  Cahill  and  the  rest  of  Townley's  satellites  on 
the  steering  committee,  and  as  that  bill  would  be 
dan-erons.  they  must  HAVE  TIMK  TO  CONSIDER! 
WT  THAT  IS  SO  EASY. 

IN  AS  MI'CII  AS  THERE  IS  NO  TIME  SET  WHEN 
TMK   STEERING     COMMITTEE     MUST     (JIVE     A 


126  THE  NONPARTISAN  LEAGUE 

DECISION  ON  SAID  BILL,  they  can  take  a  week  or 
two  weeks  and  can  go  their  usual  procedure  which  i.s 
that  the  steering  committee  can  call  into  conference 
three  or  four  members  of  the  House  and  Senate  to 
discuss  the  proposed  measure.  After  convincing  the 
three  or  four  men,  they  thereafter  call  in  three  or  four. 
more  until  THEY  HAVE  A  MAJORITY  OF  THE  CAU- 
CUS WITH  THEM. 

The  steering  committee  then  reports  the  bills 
out  as  ''unfavorable" — that  is  unless  some  MEMBER 
OF  THE  STEERING  COMMITTEE  CONVENIENTLY 
POCKETS  THE  PROPOSED  BILL. 

And  the  members  of  the  caucus  who  wished  the  bill 
passed,  FIND  THEMSELVES  IN  A  HOPELESS  MIN- 
ORITY. 

If,  perchance,  some  strong  man  would  temporarily 
sway  the  caucus,  as  Senator  Mees  of  Morton  County 
did  one  night,  then  there  is  Rule  11  which  is: 

"All  changes  made  in  bills  in  committee  shall  be 
brought  before  the  steering  committee,  and  the  import- 
ant changes  are  to  be  brought  before  the  caucus  for 
their  decision." 

It  is  very  simple  for  a  member  of  the  steering  com- 
mittee, or  for  some  tool  of  Townley's  to  get  a  small 
change  in  the  bill  before  the  caucus  which  will  re- 
sult in  the  matter  being  re-submitted  to  the  steering 
committee — and  the  steering  commitee,  WITHOUT 
ANY  TIME  LIMIT,  can  go  ou  and  win  over  other  ad- 
herents before  the  vote  in  the  caucus — and  promises 
jobs  if  necessary — and  by  that  time  the  strong  man's, 
swaying  of  the  Caucus  is  over. 

During  the  last  Session  of  the  Legislature,  months 
before  Senator  Cahill  was  endorsed  for  Secretary  of 
State,  months  before  Representative  McDonnell  was 

Two  years  later  when  Townley  was  in  control,  THEY 


ITS  BIRTH,   ACTIVITIES   AND   LEADERS     127 

endorsed  for  Railroad  Commissioner,  it  was  rumored 
all  over  the  capital  that  these  men  would  have  the  en- 
dorsements for  these  jobs. 

And  the  most  dense  person  in  North  Dakota  can  see 
iliat  after  the  steering  committee  reports  unfavorably 
on,  for  instance,  the  bill  providing  for  the  examination 
of  the  Bank  of  North  Dakota  how  a  majority  of  the 
caucus  votes  that  the  bill  shall  not  bo  passed  and  how 
Ih en  comes  Rule  8. 

"The  members  of  this  caucus  shall  be  governed  in 
their  vote  in  either  the  House  or  Senate  by  the  majority 
vote  of  this  caucus." 

If  there  are  any  members  elected  by  the  farmers 
who  do  wish  the  Bank  examined,  they  are  bound  by 
Hie  agreement  which  they  signed  before  entering  the 
caucus. 

If  he  DARE  to  get  up  in  the  Legislature  and  vote 
•'Yes"  on  a  bill  that  the  secret  caucus  had  rejected, 
he,  in  English,  Scandinavian  and  German,  is  branded 
iu  Townley's  newspapers.  AS  A  TRAITOR  TO  THE 
FARMERS  OF  NORTH  DAKOTA,  A  CROOK,  A 
SCOUNDREL  AND  A  TAKER  OF  BRIBES—Would 
you  yourself  have  the  nerve  to  go  up  against  this? 

I  know  better  than  any  other  person  in  the  United 
States  whereof  E  speak.  I  saw  this  autocratic,  undemo- 
cratic system  in  operation.  Townley  and  Lemke 
through  their  control  of  their  tools,  make  the  Legis- 
lature do  their  bidding.  A  single  example  will  suffice 
and  yon  can  look  up  the  record  for  yourself. 

Three  \  <-,ars  ago  the  Legislature  of  North  Dakota 
iimicr  consideration  a  bill  providing  for  a  one 
instead  of  a  three  man  tax  Commission,  Townley 
anrl  Lumke  at  that  time  immediately  BRANDED  THAT 
KILL  AS  AN  OLD  GANG  MEASURE.  When  the  bill 
earn*-  n | >  before  the  Legislature,  they  worked  to  kill 
it.  and  it  was  "killed." 


128  THE  NONP ARTISAN  LEAGUE 

INTRODUCED  THE  SAME  BILL.  Senator  Mees  of 
Morton  County,  for  six  years,  had  worked  in  support 
of  the  three  man  tax  commission.  As  Secretary  of  the 
Farmers  Educational  Union  of  Morton  and  Grant 
counties,  he  had  assisted  the  fight  in  its  behalf.  As 
Chairman  of  the  Committee  on  Taxation  three  years  1>- 
fore  he  had  led  the  fight  for  it  and  now,  in  the  twink 
ling  of  an  eye,  after  six  years  of  work,  after  he:  had 
seen  the  three  men- composing  the  Tax  Sommission  of 
North  Dakota  in  the  very  lawsuit  which  I  started  myself 
entitled  Northern  Pacific  Railway  Company  vs,  Mor- 
ton County;  32  North  Dakota,  page  67,  compel  the 
railroad  companies  to  pay  taxes  on  over  thirty  million 
dollars  worth  of  property,  after  this  Commission  was 
a  success,  Senator  Mees,  because  Townley  and  Lemke 
wanted  a  one  man  Tax  Commission,  which  they  could 
control,  saw  these  men  foster  a  measure  providing  for 
the  repeal  of  the  three  man  commission. 

Senator  Mees,  fighting  the  Socialist  League'  leaders 
went  TO  THE  STATE  OFFICIALS  ELECTED  BY 
THE  FARMERS  OF  NORTH  DAKOTA  ON  THE 
FARMERS  TICKET  FOR  ASSISTANCE.  He  went  to 
the  State  Auditor  and  requested  that  he  appear  before 
the  Committee  on  Taxation  to  protest.  This,  State 
Auditor  Kositzky  did.  He  appeared  before  that  com- 
mittee and  protested  so  strongly  and  vehemently  that 
Senator. Mees  won  by  a  vote  of  nine  to  eight. 

But  behold,  a  man  who  was  not  a  member  of  that 
committee,  a  Socialist  by  the  name  of  R.  H.  Walker 
of  Oliver  County,  got  up  and  said  that  he  was  a  mem- 
ber of  that  Committee,  that  L.  L.  Stair,  the  I.  W.  W. 
speaker,  had  appointed  him  a  member  of  that  Commit- 
tee. He  voted  against  Senator  Mees,  and  Senator 
Mees,  to  his  astonishment,  saw  a  man  who  was  not  a 
member  of  that  committee,  casting  a  vote  so  that  the 
final  vote  was  nine  to  nine  and  consequently  tied.  Th»- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS   129 

bill  was  again  taken  up  in  secret  caucus  and  it  was 
rumored  that  Senator  Mees  was  going  to  be  "disciplin- 
ed." 

Senator  Moos,  the  farmer  who  had  organized  the 
Nonpartisan  League  in  Morton  County,  who  had  con- 
ducted twelve  district  conventions  for  them,  who  w->.s, 
fortunately  for  the  people  of  North  Dakota,  no*  a 
weak  man,  was  to  be  disciplined.  Senator  Mees. 
didn't  want  to  run  for  the  Senate,  who  was  forced  into 
the  Senatorial  rare  by  a  few  of  us  fellows  in  Mo  TOM 
County,  all  Leaguers,  who  wished  to  have  Seru^-irs 
who  Townley  could  not  control. 

Among  those  who  did  this  diciplining  was  Sp<-,.  ,^r 
Stair  who,  although  he  two  years  before  had  been  -'or 
a,  three  man  tax  Commission,  now  suddenly  charged 
to  a  one  man  tax  commission.  Member  after  member 
got  up  and  TKIKD  tot  ell  why  they  had  changed 
Townley  sat  back,  a  satisfied  smile  on  his  face.  ^  S 
TOOLS  AVEKK  DOING  HIS  BIDDING. 

There  was  a    pause   in   the   meeting.     Senator   M\-es 
saw  that  they  expected  him  to  defend  his   viewpoint.. 
He  got  up,  walked  to  the  front  of  the  room  and  cle. 
and    concisely    presented    an    absolutely   vmanswer:;nie, 
argument  for  the  three  man  Tax  Commission. 
«  In  conclusion  he  turned  to  Townley  and  said: 
.  "Two  years  a.uo,  you  were  opposed  to  the  one  \inin 
Tax   ( 'nmmissioii.     Yon  said   that   the   old   gang,    t'utt 
Governor  Ilanna    wanted   this  law  passed  so   that  ho 
could  have   control   of  the   levying   of  taxes.     If   this 
law  was  .bad  then,  it  is  bad  now." 

"I'll  tell  you.  fellow  members,  I  was  against  this    nil 
two  years  ago  and    [  am  against  this  bill  now.     My 
conscience  will  not  permit  me  to  vote  Yes  on  this  nie^s 
ure.     I  want  to  be  iu  a  position  when  I  get  back  home 
so  that  I  can  explain  to  my  neighbors  who  sent  me  to 


130  THE  NONPABTISAN  LEAGUE 

tlie  Legislature,  each  vote  that  I  cast.  I  wish  to  say 
this  to  you — that  when  you  go  back  home,  when  you 
are  out  there  sitting  on  your  plow,  and  your  neighbor 
comes  up  to  you,  the  neighbor  who  helped  to  send  you 
down  here,  and  asks  why  you  voted  for  a  bill,  you  will 
have  to  explain  it  yourself.  Lemke  will  be  back  in  St. 
Paul,  Pike  will  be  back  in  St.  Paul,Day  will  be  back 
in  Spokane,  Roylance  likely  back  in  Utah,  Mills  in  , 
Australia  and  Townley  will  be  God  knows  where.  They 
won't  be  there  to  explain  it  to  your  neighbors  for  you, 
and  I  serve  notice  that  I  propose  to  vote  in  such  a  way 
as  my  consience  dictates,  and  so  that  I  will  be  able  to 
explain  my  vote  when  I  get  back  Home." 

No  sooner  had  Senator  Mees  sat  down  than  Townley 
arose.  Mees  knew  that  the  cards  were  stacked,  and 
Townley 's  attitude  showed  that  Senator  Mees  had  no 
chance  in  this  unfair  fight.  Townley  was  there  to  make 
an  example  of  Me*»x.  the  man  who  had  dared  to  defy 
him,  who  had  dared  to  say  that  he  wouldn't  be  bound 
by  Rule  No.  8  Among  other  things  Townley  said: 

"Senator  Mees  says  that  he  with  a  good  conscience 
cannot  vote  for  this  bill— that  his  conscience  won't  let 
him.  MEES  OTOIIT  TO  HAVE  THOUGHT  OF  THAT 
MEFORE  HE  SIGNED  THIS  AGREEMENT.  Mees 
says  that  he  understood  that  the  agreement  covered 
only  the  original  farmers  program.  He  ought  to  have 
known  better.  After  a  man  signs  the  agreement  to 
wbide  by  what  this  caucus  does,  HE  ISN'T  SUPPOSED 
TO  HAVE  A  CONSCIENCE.  Mees  says  that  he  wanta 
to  be  able  to  explain  his  vote  to  his  neighbors.  If  noc- 
ssary,  I  want  Mees  to  go  home  and  lie  to  them  like 
a  damned  horsethief,"  There  was  tre-mondous  applause. 
Senator  Mees  then  arose  and  asked  that  he  be  excused 
from  voting,  and  stated  that  he  wanted  to  vote  as  his 
conscience  dictated.  Senator  Cahill  marie  a  motion 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       131 

that  Senator  Mees'  request  be  granted.  A  lightning 
glance  passed  from  Townley  to  Cahill,  and  Cahill, 
weakling  that  he  is,  got  up  and  withdrew  his  motion. 
There  was  only  one  man  who  backed  up  Mees,  Senator 
Welford  of  Pembina  County.  Wei  ford  couldn't 
stomach  it.  The  others  were  afraid. 

When  Senator  Mees  saw  that  the  caucus  wouldn't 
excuse  him, -Senator  Mees  walked  out  of  that  can 
and  when  the  bill  came  up  in  the  Senate  he  voted  "no" 
on  the  bill.     And  Senator  Meees,  because  he  dare<    to 
defy  Townley,  was  no  longer  admitted   to   the  s< 
caucus — he   couldn't   get   through   the   iron   door    \.-,h 
it's  guard. 

Townley  and  Loinke  in  eontrol  of  the  1'iank  of  N«-vr,h 
Dakota,  with  its  thirty  million  dollar  i'uoiings,  a>  it 
had  a  while  ago,  with  the  thousands  of  jobs  they  I  ave 
either  created  or  ean  create  at  will,  are  stronger  Til  X 
THE  LEGISLATURE.  And  did  Towi.loy  promise 
jobs?  Three  years  ago  he  needed  three  votes  in  me 
Senate.  The  old  gang  had  the  Senate  and  Townley  s<  .-it 
men  to  Senator  after  Senator  trying  to  make  deals  v  th 
them  to  get  control  of  the  Senate,  offering  to  end*1  ^se 
this  man  for  Lieutenant  Governor  two  years  later,  or 
to  make  this  man  Warden  of  the  Penitentiary.  T'us 
is  what  Townley  calls  "'clean  politic*-"  it  is  rotte'ier 
than  Tammany  Hall,  fit  ONLY  FOR  ALKX  McKEN- 
ZIE,  THE  SO-CALLED  DIRTY  LOOTER  OF' 
ALASKA.  WHO  WORKS  IN  CONJUNCTION  AVI  nH 
TOWNLEY. 

Under  Rule  5,  the  steering  eoimnittee  makes  its  -e~ 
port  to  the  caucus.  On  important  questions  iliere  may 
be  no  debate  at  all,  and  on  unimportant  ones,  they  rnay 
talk  for  hours.  For  instance  let  us  take  the  hill  creat- 
ing the  {tank  of  North  Dakota,  many  legislators  who 
voted  for  the  bill  could  not  tell  what  they  wore,  about. 
I  h.  e  letters  <>n  file  written  bv  some  of  these 


1:12  THE  NONPARTISAN  LEAGUK 

same  legislators  asking  about  matters  dealing  with  the 
bill  which  show  that  they  knew  little  about  it  when 
they  voted  "Yes" — but  tbey  debated  a  long  while 
this  bill  regulating  the  width  of  bob  sleds  in  Xorth  Da- 
kota. 

The  League,  of  course,  had  its  detectives  among  the] 
legislators.      It   was   their  business  to   drop  in  with  a 
bunch   walking  along  the  street   and  talk  with  them, 
to  eavesdrop  oil  conversations  and  to  find  out     if  they 
dissatisfied  or  if  anyone  was  "kicking".     If  they  were, 
they  were  immediately  reported  to  headquarters  and 
Townley  and  Lemke  sent  for  the  man  and  proceeded 
to  straighten  him  out.     They  had  the  espionage  system; 
down  perfect. 

How  does  the  minority  bind  the  majority?  This  way. 
At  the  secret  caucus  suppose  there  were  twenty  one] 
men  present  and  eleven  voted  "Y.es"  and  ten  "No" 
on  the  bill,  then  not  only  are.  the  twenty-one  men 
who  were  present  bound  by  the  rules  of  the  majority, 
WT  ALSO  ALL  OF  THE  MEN  WHO  SIGNED  THE 
AGREEMENT.  Some  of  the  legislators  had  little 
books  in  which  the  bills  were  numbered  one.  two.  three 
four,  five  etc.  When  a  bill  was  to  be  voted  upon. at 
the  Secret  Caucus  they  pulled  out  their  little  book  an<l 
if  they  were  voting  on  Bill  No.  5.  and  the  caucus  voted 
''Yes  "  they  wrote  "Yes."  in  the  book  opposite 
bill  No.  T)— and  next  day  when  they  came  to  vote  upon 
the  floor  of  the  House  or  Senate  and  the  opposition 
brought  forth  honest  argument— yet  the  book  govern- 
ed, not  reason— and  the  vote  of  "yes"  followed. 

hi  addition  to  some  of  the  books  they  had  anothel 
method  of  keeping  their  men  in  line.  The  first  man 
on  the  list  of  Representatives  was  according  to  the-  al- 
phabet, .1.  ,J.  Alberts  of  Divide  County.  Alberts  how- 
ever is  not  a  very  intelligent  kind  of  a  fellow  and  ] 
understand  made  one  or  two  mistakes  with  the  resuli 


ITS  IJIIITH..  ACTIVITIKS  AND  LKADERS        133 

Unit  they  had  IJert  Arnold  of  Bowman  vote  first  and 
Alberts  next.  It  was  understood  that  upon  all  im- 
portant measures  the  Non partisans  were  to  vote  the 
way  Bert  Arnold  voted.  If  Bert  Arnold  voted  "Yes" 
the  rest  should  vote  "Yes"  and  if  h<'  voted  "No"  the 
rest  should  vote  "No". 

This  is  their  much  vaunted  (le.inoc.racy — this  is  what 
Walter  Thomas  Mills  praises  in  Washington  and  other 
states  arid  what  Charles  Edward  Russell  who  has  been 
on  the  Townley  payroll  glorifies  and  calls  "A  Farm- 
ers' Legislature'' — the  thing  that  Gaston,  also  on  Town- 
ley  ?s  pay  roll,  boosts— and  what  a  bunch  of  non-resi- 
dents preachers  and  ministers  without  any  actual  know- 
ledge whereof  they  speak,  endorse. 

I  SAY  TO  THE  NONPARTISAN  FARMERS  OF 
XORTH  DAKOTA-TRY  IT  OUT.  Go  to  any  of 
legislators  you  voted  for  arid  ask  them  to  explain 
any  important  bill  to'  you.  THEIR  IGNORANCE 
WILL  APALL  YOU.  They  were  implicitely  and  trust- 
ingly following  the  dictates  of  unscrupulous  men,  men 
without  political  consciences  or  morals.  MEN  WHOSE 
PROGRAM  IS  NOT  THE  FARMERS  PROGRAM,  but 
who  plan  pure  unadulterated  Socialism.  These  men 
tried  to  pass  Senate  bills  4o,  44  and  94,  which  would 
have  fastened  pure  unadulterated  fabian  socialism  up- 
on you — the  fight  of  men  like  Mees,  Kositzky,  and  the 
rest  of  us  scared  them— THEY  DIDN'T  DARE  TO 
GO  THROUGH  IN  FACE  OF  OUR  OPPOSITION- 
but  with  Lemke  as  attorney  general  and  entrenched 
with  a  new  lease  of  power  they  would  attempt  new 
ideas  and  carry  out  old  plans. 

I  say  tn  you.  ho  To  re  you  vote  for  any  Representative 
to  go  to  Bismarck,  MAKE  HIM  SIGN  AN  AGREE. 
MENT  WITH  YOU  TO  REFUSE  TO  GO  INTO  ANY 
SECRET  CAUCUS  NO  MATTER  WHO  ASKS  HIM. 
The  secret  caucus  is  a  thousand  times  more  dangerous 


134  THE  NONPARTISAN  LEAGUE 

to  the  welfare  of  the  farmers  of  North  Dakota  than 
the  Chamber  of  Commerce.  TAKE  THE  WORD  OF 
ONE  WHO  KNOWS.  Your  representative  should 
openly  debate  all  proposed  laws  upon  the  floor  of  the 
House  or  Senate  SO  THAT  YOU  CAN  COME  TO 
BISMARCK  AND  HEAR  WHAT  HE  SAYS. 
Iron  doors  and  secret  recesses — especially  a  hall  under 
the  control  of  Alex  McKenzie's  right  hand  man  Ed. 
Patterson-SHOULD  HAVE  NO  PLACE  IN  OUR 
SYSTEM  OF  GOVERNMENT! 

AND  FRAZIER  KNOWS  ALL  THIS  AND  STOOD 
FOR  IT  AND  IS  STILL  STANDING,  CHAINED, 
HALTERED  AND  TIED.  WHAT  A  PITY! 


ITS  IWITH,  ACTIVITIES  AND  LEADBKS        135 

CHAPTER  X 
TAXATION  UNDER  THE  SOCIALIST  REGIME 

As  a  part  of  tlie  propaganda  aimed  to  get  their  can- 
didates votes,  the  Socialist  leaders  told  the  people 
that  the  taxes  were  too  high ;  that  if  the  people  would 
only  vote  for  them  not  only  would  the  taxes  be  lower- 
ed, but  that  the  corporations  and  the  men  of  wealth 
would  pay  more  than  the  farmers, — the  farmers  were 
paying  more  than  their  share.  Originally  it 
was  the  farmers  that  this  outfit  was  most  concerned 
with  and  not  the  laboring  men— they  came  later  when 
they  commenced  to  get  members  in  labor  states.  In. 
North  Dakota  we  have  less  than  5000  labor  members. 
What  are  the  facts?  Take  for  instance  the  very 
time  that  the  socialist  leaders  were  organizing  the  lea- 
gue in  North  Dakota.  In  1918,  the  State  Tax  levy  for 
all  purposes  was  $1,572,255.46.  In  1919  when  the  So- 
cialist's were  in  control  the  state  taxes  were  $3,800,- 
000.  This  $3,800,000  is  only  the  beginning. 

Some  of  the  state   officials  repeatedly  warned  the 
farmers  as  to  what  was  happening.     The  newspapers 
controlled  by  the  Socialists  denied  the  statements  made 
Here  are  exerpts  from  some  of  their  newspapers : 
Xon  partisan  Leader,  May  3,  1919— 
The  truth  will  leak  out,  and  the  farmers  of  other 
states  refuse  to  believe  the  lies  these  papers  have  pub- 
lished, just  as  the  farmers  of  North  Dakota  know  that 
State  Auditor  Kositzky  is  lying  about  taxes. 
Non partisan  Leader  May  17,  1919. 
"No  living  man  can  tell  you  now  what  your  taxes 
are  going  to  be  on  a  certain  piece  of  farm  land  this  year 
or  what  the  levy  in  mills  will  be. 

"One  thing  is  certain,  however,  and  that  is  that  the 
increase  for  state  taxes  will  be  very  light  because  of  the 
large  sums  that  will  be  raised  as  a  result  of  the  cor- 
poration taxes,— one  thing  is  certain,  if  there  is  a  slight 
increase  m  the  tax  on  .your  farm,  it  will  not  amotmt  to 


136  THE  NONPARTISAN  LEAGUE 

as  much  as  the  decrease  effected  by  the  EXEMPTION 
OF  FARM  IMPROVEMENTS  FROM  TAXATION. 
Considering  these  COLD  FACTS,  are  the  TAX  GUESS- 
ERS  SINCERE,  or  are  they  just  kicking  up  a  little 
election  dustJ" 

Nonpartisan  Leader,  April  26,  1919— 

"The  old  gang  is  pretty  hard  up  for  something  to 
talk  about  when  they  can  find  nothing  better  than 
wie'rd  stories  to  prove  League  officials  are  trying  to 
rob"  the  farmers.  That  has  been  the  song  ever  since 
the  organization  of  the  League  started— BUT  EVERY 
TALE  TOLD  HAS  PROVEN  A  LIE. 

"And  the  people  of  North  Dakota  will  swallow  no 
such  stuff  and  nonsense,  and  it  is  an  insult  to  their  in- 
telligence to  asume  they  are  ignorant. 

"Neither  will  the  repeated  falsehoods  about  ruin- 
ous taxes  be  believed  by  any  but  feeble  minded." 

Supplement  to  the  North  Dakota  Leader  April  26>. 
1919- 

"Mr.  Kositzky's  statements  are  equally  false.  He 
has  repeatedly  declared  that  the  average  farmers  will 
pay  three  times  as  much  taxes  in  1919  as  he  did  last 
year —Instead  of  having  his  taxes  doubled  or  trebled 
(as  the  opposition  papers  and  hostile  politicians  pre- 
dict) the  average  farmer  in  1919  will  pay  $5.58  a  quart- 
er-section more  than  he  did  in  1918. " 
DO  YOU  GET  THAT? 

Here  is  a  comparison  of  1918  and  1919  taxes  with  the 
state  hail  tax  not  included. 
Mercer  County: 

1918          1919 

Thos.  Fegenkau— All  23-144-90 $254.44     $627.78 

Edward  Ostei— NB%  7-144-86 62.26       123.71 

Ed.  Heinemeyer— SEVi  31-145-84 73.93       102.5? 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS  137 

"Wai.  Clausoii— SW%   18-134-86, 69.65  126.11 

Richland  County : 

P.  E.  Sletmoe— SW%  34-135-49 69.04  121.63 

Theo.  Larson— NEV4  28-133-48 63.90  112.91 

Christ  Ncss-NWV4  23-122-48 78.30  119.74 

Chas.  R.  Pickney— SEi/i  21-130-47....  58.22  149.86 

Ar.drew  Hackiiey-SWV4    9-135-49....  77.30  136.22 

McHenry   County : 

L.  E.  Goodlaxon— NE  %24-151-76.. 28.09  50.50 

Eroil   Everson— NEi/4   16-154-79.. 35.97  64.56 

J.  E.   Westford— SWVi   25-159-78....:...'     43.30  85.97 

Ok    Gilbertson— NEi/4    15-156-76 54.58  120.79 

Siver  Dokkenm-Si/2  NWV4  157-76....  23.01  50:23 

Stutsman  County : 

T.  R.  Ne^us— SEV4  25-137-64 75.37  115.29 

•I.  A.  Cof fey-All  10-144-62 . 347.80  522.64 

JoLn  D.  Unruh— Sy2  NB%  N%  SB% 

^4-144-6i> -.'. 39.94  65.90 

FrM    E.    Lee— All    17-137-63' J 245.76  454.94 

T.  H.   Thorn— Sy2  4-140-65... 112.98  184.82 

])pma  Weld— Sy2  21-140-67 89.41  165.10 

Barnes   County: 

P.    \V.    Krenkanip-NEli    1-140-58... 79.74  273.04 

Prank  Hoimos— NW l/4  19-140-58 57.19  220.46 

U.  K.  Rassiuusson— All  7-143-59 249.83  495.91 

.Jos.    M.    Srliall— S\V:vt    :U)-137-57 93.83  264.14 

Wm.   Burehill-SW%  10-142-57 92.87  129.46 

Dickey  County  : 

.J.  K.  Sko«rlaiid-NKi.j  1>1-12!M>1 45.28  74.88 

B.  L.  Nelson     \K' .,   11132-62 45.9:)  74.26 

Bruce   Scott — N\V  >  ,    .VirJl-fvJ 50.90  107.43 

M.-.thew    Whclan     SKI,    7-129-64 32.68  59.34 

B.  s.  Hod-c     N\V'i    l-J-r2Ji-64 30.13  56:32 

< i rand  Forks  (Bounty: 

HUTIS  And^i-soii -SK14 .  :Jl-1f>0-50..'. 98.56  183.46. 


i:t8  TIJK   NONPARTISAN  LEAGUE 

J.  R.  Pupore— SBVi  19-153-50 53.30  119.34 

O.  C.  Holden— NEi/i   16-150-51 35.96  74.81 

Geo.   Undenby— W%NW%   SW% 

15-153-51 51.07  102.52 

A.  O.  Trageton-NW^  32-149-54 67.77  128.49 

P.  B.  Halt— NWy4  6-153-54 51.86  102.31 

Traill  County: 

K.  O.  Brokke— NWV4 64.93  99.85 

Ole  I.  Hanson— SW*4  28-146.50 76.64  138.12 

Martin   Spellum— NE%    12-147.51 44.62  90.02 

T.  R.  Tobiason— SW%  8-148-53 101.32  209.94 

C.  A.  Ulland-SEi/4  28-146-52 75.37  128.54 

Benson  County: 

W.  J.  Church— SWi/i  5-154-70 51.66  108.08 

John  R.  Maddock— NB%  10-151-69....  58.09  104.10 

John  F.  Randall— NB%  14-156-70 36.18  85.46 

Sherman  F.  Enget— NE^i  13-153-71....  42.66  145.87 

B.  S.  Montague— NB%   12-153-68 54.30  103.04 

McLean  County: 

Walter  Graham— SE%  13-143-80 32.52  91.57 

Jacob  Shock— SW%  15-149-82 40.12  83.17. 

Olaf  Hanson— SWi/4  2-150-86 44.81  99.88 

Joseph  Redman— SWy4  26-150-83 45.97  117.69 

Wm.  Koosman— NE14  24-150-83 45.09  1.12.77 

Eddy  County: 

C.  W.  Bronlin— All  9-150-65 111.58  244.64 

W.  W.  Teffry— NWVi  17-148-66 29.48  88.50 

0.  H.  Olson— NW*4  8-149-67 31.10  103.56 

B.  C.  Larkin— SE%  8-148-64 44.87  58.79 

Timothy  O'Connor— SWi/4  16-149-67....  26.04  57.71 

Ramsey  County: 

G.  O.  Johnson— NW%  9-156-60.... 51.09  107.6D 

L.  D.  Maurer~NWi4  32-158-64..... 57.45  105.91 

Robt.  Coehrane— SB  i/435-155-65 41.58  80.86 

1.  E.  Eorlie— Ei/2  SE^  S%  NB% 

8-155-66 .,..1 57.95  121.94 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       139 


N-.  Morrison—  Ei/2 

10-155-64  ..............................................      66.32     111.02 

Ward  County: 
Olaf  Lokensgard—  NW%  35-154-83  ......      44.95       62.4(> 

M   M.  Powell—  NW%  23-157-83  ............      50.29       68.71 

August  Krantz—  SEi/4  9-161-88  ..............      46.99       56.25 

A;  S.  Spicher—  SE%  15-155-85  ............  ....      75.07     101.25 

John  E.  Fleckten—  SW%  20-160-89....      25.90       51.80 

Emmons  County: 
Pay  Hardins-NWi/i  26-134-75  ............      46.78       68.25 

John   Snyder-  NW%   34-134-76  .......  .....       39.25       63.29 

Arend  Hasper-NW*4  14-129-76  ............      34.44       71.68 

Mik*  Scherr-NE%  and  SW%  29-131-76  51.98       92.86 
A.  N.  Drake—  West  %  Sec.  8432-76,  ex- 

cept Townsite  of  Linton  (in  city  of 

Linton)  ......  ......................................  .  .....     197.17     471.86 

John  Bader—  Lot  7,  Block  15,  City  of  Lin- 

M,H  ..............................................  .  ...........       17.72         3.70 

Prom  the  newspaper  clippings  quoted  you  will  note 
how  the  average  farmers  taxes  in  1919  would  only  be 
$5>58  a  half  section  more  than  they  were  in  1918.  I 
have  therefore  taken  a  few  pieces  of  land  which  are 
owiicd  by  prominent  men.  In  Benson  County  for  in- 
st,stiH-.<»  rimrch,  Maddock  and  Randall  ARE  THE  NON- 
PAJITISAN  SENATOR  AND  REPRESENTATIVE 
"RESPECTIVELY.  In  Stutsman  County  J.A.Coffey  is 
the  District  Judge.  In  Eddy  County  B.  C.  Larkin  is 
a  nonpa-rtisan  representative.  O.  H.  Olson  is  the  senat- 
or from  Eddy  County.  In  Ward  County  John  E, 
•Flcv.kten  is  the  State  Senator.  In  Emmons  County 
Pay  Harding  is  the  Nonpartisan  Representative,  and 
Mike  Scherr  was  one  of  the  candidates  at  the  last  elec* 
tion  to  the  House. 

In  these  statements  I  want  you  to  note  especially 
that  THE  STATE  HAIL  TAX  IS  NOT  INCLUDED. 
A  concrete  instance  which  I  am  mentioning  solely  be- 


140  THK    XONPARTISAX    LEAGUE 

cause  of  the  fact  that  Walter  Liggett,  a  Socialist  who 
is  now  on  the  state  pay  roll  as  Deputy  Immigration 
Commissioner,  used  it  in  the  debate  with  Mr.  Kositzky 
on  April  12,  1918.  Here  is  what  Liggett  said  : 

"I  am  going  to  show  you  two  or  more  fanners  in 
this  county  (Burleigh  County)  are  actually  paying,  and 
I  am  going  to  compare  these  figures  with  the  fig- 
ures that  Mr.  Kositzky  has  given  you  and  ask 
you  how  correct  you  think,  his  figures  are. 
But  I  want  to  ask  if  Mr.  Engdahl  is  in  the  audience.  Mr. 
Kngdahl  lives  in  Gibbs  Township.— Mr.  Eng- 
tlahl  paid  in  t  axes  last  year  $281.32  for  all  pur- 
poses—I have  figured  it  very  carefully,  ladies  and 
gentlemen— and  I  find  that  next  year,  Mr.  Engdahl 
will  pay  $349.91.  when  last  year  he  paid  $281.32,  in- 
cluding state  taxes.  That  is  an  increase  of  $72.00  all 
told  and  Mr.  Kositzky  would  have  you  believe  he  is 
going  to  pay  two  or  three  times  as  much  or  more." 

C.  0.  Engdahl's  Tax  Statement  for  1918  and  1919 
(Mr.  Engdahl  lives  in  (iibbs  ToAvnship.  Burleigh  Coun- 
ty, Address,  Bismarck  N.  I).1 

191S  Tax  1919  Tax   Increax 

All  Sec.  3,  Twp.  139.  Range  79  $118.32  $243.10  $124.7- 
EI/S  Sec.  4  Twp.  139,  Range  7!)  64.46  120.7*  :,«.;{;> 
Ey2of2y2,Sec.4,  Twpl 39,  Range  79  29.47  60.44  30.97 
NWVi,  Sec.9  Twp  139.  Range  79  29.39  <>0.35  30.96 
NWJ4?  Sec.  17  Twp  139,  Range  79  29.39  60.35  30.% 
25c  indemnity  hail  tax  on  558  acres 

of  croped  land ..139.50     139.50 

3c  hail  tax  on  1,440  acres  land 43.20     43.20 

Total $271.03  $667.37  $456.69 

Instead  of  Mr.  Engdahl  paying  $72.00  more  taxes,  as 
Mr.  Liggett  predicted,  Mr.  Engdahl  is  going  to  pay  a 
total  tax  of  $667.37  this  year  on  his  real  estate,  or  $456.- 
69  more  than  last  year. 

This  as  I  said  before  is  a  typical  case.  The  same  is 
true  in  all  of  the  counties  of  the  state.  The  following 


ITS  WKTII.  Ac.TlVITIKs  AND  LEADERS        141 

being  a  carefully  prepared  statement  showing  just  how 
1a\es  luive  yono  up  in  North  Dakota  since  the  social- 
ists gained  control.  Always  hear  in  mind  that  the  first 
two  years  the  socialists  were  in  power.  THEY  DID 
NOT  HAVE  CONTROL  OF  THE  SENATE  AND  THAT 
THEY  HAVE  NOT  BEEN  IN  ABSOLUTE  CONTROL 
UNTIL  A  YEAR  AGO  LAST  JANUARY. 


AVERAGE  VALUE  OF  LANDS  PER  ACRE  AS  LEFT 
BY  THE  STATE  BOARD  OF  EQUALIZATION 

County            1915       1916       1917       1918       1919       1920 

Adams  $3.90     $3.32 

$3.38 

$3.37 

$11.62 

10.64 

Barnes      .  .. 

8.03 

7.22 

7.22 

7.94 

45.78 

44.53 

"Benson 

5.81 

5.30 

5.31 

:>.25 

26.64 

26.11 

Billings  

2.24 

2.02 

2.34 

2.31 

8.84 

S.60 

Bottineau    .... 

5.60 

5.00 

5.13 

5.11 

19.38 

17.  OS 

Bowman    

3.58 

3.0S 

3.03 

3.29 

11.49 

10.60 

Burke 

4.26 

3.S3 

3.S1 

4.37 

16.63 

16.18 

Burleip-h  

4.33 

4.01 

4.06 

4.28 

18.78 

1S.40 

Cass 

9  55 

S.S7 

9.  OS  . 

9.93 

57.71 

56.46 

Cavalier   

6.71 

6.00 

6.03 

6.64 

3S.01 

37.62 

Dickey   

6.49 

5  90 

(5.24 

6.91 

34.40 

33.S5 

Divide  ..  .    . 

4.40 

4.01 

4.19 

4.77 

15.81 

13.76 

Dunn   .         .  .. 

3.46 

3.19 

4.71 

4.67 

15.71 

15:28 

Kddv  . 

6.24 

5.45 

5.44 

6.33 

35.SS 

35.01 

Kinmons 

4.16 

3.72 

3.78 

4.19 

18.30 

17  93 

Poster 

6.27 

5.14 

5.30 

6.38 

'I")  •>'•• 

I    !.•'•> 

Ufifl 

Golden  \r  alley 

3.78 

3.35 

3.36 

3.90 

•)*/.•)•> 

13.44 

*\9*J 

11.99 

Grant    

3.61 

3.26 

3.60 

4.18 

17.67 

17.18 

Grand  Forks 

8.84 

8.25 

8.57 

8.84 

50.S!) 

49.65 

Gri^gs  

7.99 

7.15 

7.29 

7.98 

44.70 

43.84 

Hettmiivr     .... 

3.81 

3.45 

3.67 

4.40 

16.77 

16.20 

Kidder 

5.85 

3.45 

3.63 

4  17 

:w  :\:\ 

1  7  J.<» 

*AM  tax  figures  quoted   in  this  ehapter  were  prepar- 
ed  by  State  Auditor  Car!  Kosit/ky. 


142 


THE  NONPARTISAN  LEAGUE 


Logan  4.24 

LaMoure  ....  6.78 

MeHenry   4.49 

Me-Intosh  4.66 

MeKenzie  2.57 

McLean   3.96 

Mercer   4.11 

Morton  3.61 

Mountrail  3.49 

Nelson  7.70 

Oliver  3.68 

Pembina  '"7.11 

Pierce   4.44 

Ramsey    . 6.78 

Ransome  7.09 

Renville   4.1)4 

Richland  ........  8.91 

Rolette    5.10 

Sargent 7.07 

Sheridan  4.69 

Slope  3.61 

Sioux 3.72 

Stark 3.78 

Steele 8.36 

Stutsman    6.39 

Towiier  6.63 

Traill 9.60 

Walsh 8.86 

AViird 4.47 

Wells  6.06 

The  truth  of  the 
state  officers  and  the  farmers  of  North  Dakota  sub- 
scribed to  the  program  of  the  league,  the  farmers 
meant  one  thing,  the  socialists  meant  another.  The 
average  farmer,  myself  included,  meant  by  that  phrase 
that  merely  BUILDINGS  ON  FARM  LANDS  WERE 


3.87 

3.86 

4.30 

18.50 

18.28 

6.00 

6.23 

6.86 

36.33 

35.64 

3.98 
4.21 

'  4.35 
4.24 

4.55 
4.70 

17.39 
22.52 

15.20 
19.82 

2.24 

2.30 

2.26 

8.64 

8.38 

3.48 

3.52 

3.89 

17.81 

17.36 

3.78 

4.71 

4.71 

17.31 

16.80 

3.26 

3.72 

4.33 

17.38 

16.94 

3.09 

3.43 

3.45 

13.11 

12.78 

7.10 

7.10 

7.81 

42.52 

41.67 

3.22 

3.99 

4.00 

16.12 

15.73 

6.50 

6.59 

7.96 

45.81 

44.80 

4.30- 

4.31 

4.51 

21.02 

20.55 

6.08 

6.17 

6.78 

36.99 

36.26 

6.46 

6.95 

7.26  , 

41.89 

41.12 

4.46 

5.26 

5.20  ' 

19.68 

17.06 

8.01 

8.01 

8.81 

50.83 

49.29 

4.57 

5.03 

5.06 

23.57 

22.39 

6.38 

6.37 

6.91 

35.84 

35.09 

4.20 

4.29 

4.30 

17.31 

16.90 

2.80 

2.88 

3.36 

1L13 

10.63 

3.43 

3.77 

3.55 

12.35 

10.91 

3.35 

3.36 

3.96 

15,12 

14.67 

7.59 

7.59 

7.97 

44.67 

43.78 

5.76 

5.86 

7.17 

34.50 

31.67 

5.89 

6.19 

6.50 

32.6^ 

32.04 

8.78 

9.06 

9.56 

55.01 

53.94 

7.98 

7.96 

8.76 

50.50 

49.55 

4.06 

4.55 

4.62 

18.15 

17,68 

5.41 

5.45 

5.70 

29.69 

29.01 

matter 

is  that  when 

some 

of  the 

ITS  BIRTH ,  ACTIVITIES  AND  LEADERS       143 

GOING  TO  BK  EXEMPT  FROM  TAXATION 
The  Socialists,  however,  although  they  con- 
cealed their  object  at  that  time  meant  to  bring 
about  Tim  SINGLE  TAX  AS  ADVOCATED  BY 
HENRY  GEORGE  AND  THE  SOCIALISTS  FOR 
YEARS.  They  employed  a  single  tax  expert  by  the 
name  of  W.  G.  Roylance,  from  Utah  who  at  all  times 
has  been  in  favor  of  the  old  socialist  single  tax.  An 
investigation  reveals  that  the  burden  under  the  general 
property  tax  for  the  state  and  all  political  subdivis- 
ions thereof  for  1919  was: 

$28,219,  804.00,  as  against  $20,399,682.00  for  1918,  or 
an  increase  of  more  than  $7,200,000  or  39  per  cent.  The 
Utah  theorist,  Professor  Roylance,  if  he  knows  anything 
at  all  about  the  fiscal  history  of  the  state,  knows  that 
this  is  the  most  astounding  increase  in  a  general  pro- 
perty tax  ever  experienced  by  a  stale  in  times  of  peace. 
It  may  be  true  that  during  the  scalawag  carpet-bag- 
ging regime  in  the  south,  at  the  close  of  the  Civil  War, 
greater  relative  tax  increases  were  known,  but  nowhere 
in  the  North  in  times  of  peace  has  any  state  experienc- 
ed such  a  tremendous  tax  increase. 

This,  however,  tells  only  part  of  the  story.  Townley  ?s 
legislature  exempted  large  amounts  of  personal  prop- 
erty from  taxation  with  a  resulting  shift  of  the  tax 
burden  to  farm  lands.  In  1918  farm  lands,  exclusive 
of  improvements,  bore  54.89  per  cent  of  the  total  tax 
burden,  while  in  1919  it  bore  70.36  per  cent.  In  brief 
in  1918  farm  lands  bore  $11,197,386  of  the  total  tax  of 
$20,400,000,  while  in  19.19  it  bore  a  burden  of  $19,742,- 
903.00  out  of  a  total  of  $28,219,000.00. 

This  is  a  shift  of  the  tax  burden  to  farm  lands  of  $S.- 
645,517.85  or  77.22  per  cent.  To  be  sure  there  is  some 
offset  to  this  shift.  The  farmer  was  relieved  of  $864,- 
454.00  by  the  exemption  of  his  farm  improvements,  and 
of  a  million  dollars  in  round  -numbers,  by  exemption 


144  THE  NONPARTISAN  LEAGUE 

of  personal  property.  In  other  words,  he  has  a  total 
saving  of  $1,429,033.00.  Deducting  this  from  the  total 
burden  upon  acre  property  for  1919,  we  get  a  net  in- 
crease in  the  farmers'  tax  burden  of  64.65  per  cent. 
THIS  FIGURE,  64.65  PER  CENT,  REPRESENTS 
THE  ACTUAL  AVERAGE  INCREASE  FOR  THE 
ENTIRE  STATE  IN  THE  TAX  BURDEN  UPON 
FARM  LANDS. 

The  theorist  from  Utah,  Professor  Boy  lance,  con- 
tends that  the  increase  in  the  tax  burden  is  due  to  the 
levy  for  county,  township  and  school  purposes.  Select- 
in  !:•  at  random  the  levies  in  two  counties  we  find  that 
the  county  tax  in  Adams  county  for  1918  was  $76,696.- 
65.  while  in  1919  it  was  but  $74,327.46:  that  the  town- 
ship tax  in  1918  was  $38.891.18,  while  in  1919  it  was 
$40,895.99 ;  in  1918  the  school  fax  was  $90,368.00  while 
in  191*)  it  was  $125,750.00.  In  another  county,  Foster, 
the  county  tax  in  1918  was  $70,659.00,  while  in  1919  it 
was  $88.469.00;  the  township  tax  in  1918  was  $23,- 
7:KOO.  while  in!919  it  was  $36,779.00;  the  school  tax 
in  1918  was  $104,354.00,  while  in  1919  it  was  $149,- 
329.00. 

It  will  be  noted  from  these  two  counties  that  the 
increase  in  the  total  tax  levy  for  local  purpose  is  not 
so  liTeat  as  the  state  increase  which  amounts  to  nearly 
200  per  cent,  nor  as  great  as  the  increased  burden  upon 
farm  lands,  due  to  the  single  tax  law  reeom mended  by 
the  Ttali  theorist.  Professor  Roylanee,  and  enacted  by 
>Ir.  Townley's  hand  picked  legislature  into  laws. 

That  the  single  tax  laws  of  the  theorist.  Professor 
Hoy  lance  of  Utah,  works  a  hardship  upon  the  farmer 
of  small  means  and  is  a  god- send  to  the  farmer  with, 
costly  improvements  and  to  the  dweller  in  incorporated 
towns  and  cities  is  indicated  by  the  following : 

H.  E.  Dresser  of  Spirit  wood  village,  Stutsman  Coun- 
iy  paid  on  lots  1!>  to  22  inelnsive.  block  2.  in  1919  a  tax 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       145 

oi  $10.88,  while  in  1918  he  paid  a  tax  of  $23.26 :  while 
Fred  0.  Fried  of  Spiritwood  township,  in  the  same 
county,  upon  E%  of  the  NE%  of  the  SW1^  of  Section 
15  paid  in  1919  a  tax  of  $14.35,  upon  his  unimproved 
farm  land  as  against  $8.00  in  1918. 

John  C.  Lees,  of  Buchanan  village,  in  the  same  coun- 
ty, paid  upon  lots  five  and  six  of  block  five  in  1919  a 
tax  of  $21.96,  as  against  $24.77  in  1918;  while  Will 
Pierce  of  Buchanan  township,  in  the  same  county,  upon 
the  Ni/2  of  the  NE%  of  section  22,  paid  in  1919  $59.54 
upon  his  real  estate,  exclusive  of  structures,  while  in 
1938  he  paid  but  $31.01.  G.  H.  Knobel,  NE%  of  section 
30-141-64,  which  was  valued  together  with  improve- 
ments for  uprposes  of  taxation  at  $26,858.00,  having 
more  than  $20.000.00  worth  of  improvements,  paid  hi 
1919  $128.93,  while  W.  E.  Telken,  NEVt  of  section  36- 
141-64,  valued  only  at  $9,445.00.  with  improvements 
worth  about  $2500,00,  paid  a  tax  of  $130.57  iii  1919. 

brief,  a  man  with  real  properly  valued  at  $26r- 
•*<;>  00,  paid  a  tax  -somewhat  less  than  a  man  with  prop- 
erty valued  at  $9,445.  Thomas  E.  IVndray,  the  senat- 
or from  Stutsman  county,  paid  on  real  property,  val- 
ued for  purposes  of  taxation  at  $16,792.00,  a  tax  in  1919 
of  #50.54,  while  one  of  his  neighbors,  Mr.  E.  W.  Knobel 
•with  property  valued  at  $6,000.00,  paid  a  tax  of  $72.05 
or  Almost  as  great  as  Air.  Tend  ray  who  has  almost  two 
and  a  half  times  the  property. 

The  tax  burden  under  the  laws  evolved  from  the 
lira  in  of  this  Utah  theorist.  Professor  Koylanco.  and 
emu-tod  by  Townley's  legislature  results  in  let- 
tin -j-  the  fellow  off  in  incorporated  cities  and 
us  with  less  tax  and  actually  reduces  the  tax  of 
tiu-  rich  fanner  with  large  buildings,  while  it  doubles 
•find  trebles  the  tax  of  the  poor  man  struggling  to  ina- 
pr«.\»«  his  farm  and  with  buildings  of  no  considerable 
value.  The.  following  abstract  of  assessment  was  taken 


1919 


$10.88 


14<i  TI-IK    MONPARTI8AN  LEAGUE 

from  the  books  in  Stntsman  county  and  is  self  explana- 
tory: 

STUTSMAN  COUNTY 
Owner  Description  1919  tax     1918 

Rate  mills 

R.  E.  Dresser  lots  19  to  22  blk.  2     16.63     $23.26 
Fred  0.  Fried  B%ofNE%  ofSW% 

sec  15 16.63 

J.  C.  Lees  lots  5  &  6  blk  5..! .     18.8 

.Will  Pierce  N%  of  NE*4,  sec  22     18.8 

U.  H.  Knobel  NB%,  sec  30. 

W.  E.  Telken  NB%,  sec  36 

Thomas  Pendray  NE%,  sec.  18 

-E.  W.  Coble  NEi/4,  sec  26 

Under  the  constitution  of  the  state  the  tax  levy  was 
limited  to  4  mills.  In  order  for  the  socialists  to  fasten 
the  single  tax  upon  the  farmers  it  was  necessary  that 
the  tax  be  raised,  and  the  only  way  that  could  be  done 
was  to  have  a  new  valuation  instead  of  the  old  one.  The 
socialists  therefore  imported  the  single  taxer  and  he 
showed  the  way  around  the  difficulty  by  assessing  farm 
land  at  100  per  cent  instead  of  30  per  cent.  The  result 
of  revaluation  along  socialistic  lines  being  as  follows: 
Name  of  County.  191&'  1919 

Assessable        Valuation 
Acreage          Real  Estate 
(1919  levy,  2.98  mills) 


8.00 
24.77 
31.01 
63.43 
66.58 
84.39 
43.31 

14.35 
21.06 
59.54 
128.93 
130.57 
90.54 
72.05 

Adams  $     772,045  *8,966,250 

Barnes  947,690  43,383,708 

Benson    767,069  20,431,770 

Billings 567,767  5,018,001 

Bottineau 1,063,149  20,609,678 

Bowman  -      633,243  7,272,314 

Burke  677,126  11,266,352 

Burieigh  990,81  S  18,606,005 

€ass 1,112,870  64,231,042 

Cavalier  955,380  -36,308,189 


1918 

Valuation 
Real  Estate 

(1918  levy, 
4.3  mills  > 
$  2,240,391 
9,211,890 

4,664,448 
1,326,484 
6,457,004 
2,381,496 
3,266,741 
6,192,009 

18,376,452 
6,986,04:1 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS 


...............  .  716,878  24,703,018 

Divide    ................  759,423  12,036,588 

Dunn    ..................  926,756  14,557,066 

Eddy  ..........  .  .........  389,448  13,935,590 

Bmmons  ..............  923,909  16,895,711 

Foster  ..................  405,796  14,339,501 

Golden  Valley  ....  556,775  7,486,946 

Grand   Forks   ....  924,748  47,063,438 

Grant    ..................  980,568  17,331,924 

Griggs  ..................  449,596  20,103,289 

Hettinger  ............  668,688  11,210,551 

Kidder   ................  811,627  14,538,445 

LaMoure    ............  727,879  26,446,520 

Logan    ................  609,131  11,270,895 

Mr'Henry  ............  1,150,566  20,021,590 

Melntosh    ............  605,795  13,646,189 

M.'Kenzie    ..........  1,322,890  11,431,564 

McLean    ..................  1,171,890  20,862,941 

Mercer    ................  622,644  10,788,861 

Morton    ..............  1,162,126  20,195,^M 

Monntrail    ..........  1,003,450  1:5,174,690 

\VlKoii    ................  623,97:5  26,536,272 

Oliver   ..................  430,980  6,<)44,941 

Pembina  ..............  707,716  32,422,94'J 

Pierce   ..................  627,156  .13,187,940 

Ramsey    ..............  758,31  1  28,058,71", 

Rmisom    ..............  5:{7.:i41  22,49;-!,864 

Ht'iivillc    ..............  556,824  10,955,618 

Richland    ........  908,061  46,155,296 

Rolette   ....  ............  527,610  12,438,485 

Sin-gent  ................  536,518  19,229,212 

Sheridan    ............  585,116  10,125,463 

Sioux   ....................  153,450  1.894,674 

Slope  ................  ....  676,891  7,536,365 

Towiier  ................  628,691  20,554,375 

rftark    ..................  814,366  12r,312,124 


148  THK   NONPARTISAN  LEAGUE 

» 

Steelc 454?03s        20,282,706         4,066,584  • 

StutsmaiL l.:w:j.JS4fi       48,105,933       11,801,045 

Powner  628,691       20,554,375         4,671,161 

Traill    , 545,761        30,024,238         5,898,575 

Walsh   818,647       41,341,800         8,203,871 

Ward 1, 252,70:  J        22,745,504         8,742,259 

Wells   797,927       23,685,745         5,216,435 

Williams  1,223,712        17,003,286         5,586,108 

..      Total $40,9.36,894  $1,072,167,653  $265,315,957 

You  will  note  especially  that  the  levy  which  in  1918 
was  4.3  mills  was  not  reduced  two  thirds  as  it  should 
have  been,  had  the  amount  of  tax  which  the  farmers 
was  going  to  pay  in  1919,  been  the  same  in  dollars  and 
cents  as  he  paid  in  1918.  In  that  ease  the.  levy  would 
have  been  approximately  1.43  mills,  instead  of  2.98 
mills.  As  a  member  of  the  State  Board  of  Equaliza- 
tion, I  am  thoroughly  familiar  with  jusf  exactly  the 
way  this  was  done. 

The  legislature  in  its  regular  session  in  1919  made 
a  tax  levy  of  $4,540,826.00  which  was  168.94  per  cent 
more  than  the  1918  levy. 

Of  the  original  state  levy  of  $4,540,826,  the  farmer 
is  asked  to  pay  $3,178,578.  AND  AT  THIS  SAME  SES- 
SION WAS  INTRODUCED  A  BILL  PROVIDLNG 
THAT  LANDS  UPON  WHICH  TAXES  WERE  NOT 
PAID  SHOULD  REVERT  TO  THE  STATE  AND  IM- 
MEDIATELY BECOME  A  PART  OF  THE  PUBLIC 
DOMAIN.  Under  the  old  classification,  the  farmer,  in 
spite  of  the  tremendous  increase  in  all  levies  would 
have  paid  only  $2,492,579  of  this  year's  total  state  .tax 
levy. 

THESE  FIGURES  APPLY  TO  THE  STATE  TAX 
ALONE. 

It  is  in  county  taxation  that  the  real  niceties  of  the 
socialist  scheme  of  confiscation  of  lands  through  ex- 
orbitant taxes  show  up. 


In  1918  eount.v  ta\.-s  eolleeted  totaled  $ii,::.V>.352. 
This  year  the  total  under  tjic  original  levy  it  was 
more  than  $9,000,000,  and  of  this  amount  the  fanner 
WOXild  pay  $6,300,000,  or  almost  as  much  in  county  taxes 
as  were  paid  by  all  classes  of  property  last  year,  where- 
as had  the  socialists  been  content  to  charge  the  farmer 
•with  the  same  proportion  of  the  taxes  which  was 
assessed  against  the  fanners  before,  the  farmers  this 
year  would  have  paid  only  $4,490,000  of  the  $9,000,000 
of  county  taxes. 

The  following  official  table  shows  how  the  socialists 
have  favored  other  classes  of  property  at  the  expense 
of  the  farmer : 
CLASS  OF  PROPERTY        PERCENTAGE  OF  TAX 

Improvements  on   farm  lauds 3.416 

FARM   LANDS' ...51.418     70.36 

Town    and    city    lots ".  M.453       '1802 

Personal   .' 17.482       7.812 

RAILROADS 17.937      14.343 

'Telegraph .1939      .0986 

Express 1918      .158 

Telephone 4513      .3746 

Street  railways 09         .016 

Sleeping  Car  Co's  04         .0147 

In  keeping  with  the  socialist  single  tax  theory  im- 
provements-on  farm  lauds  were  exempted  from  tax 
ation.  The  amount  of  benefit  to  the  farmer  may  be 
arrived  at  by  deducting  :>.41fi  percent  from  the  18,95 
percent  increase  in  the  farmers'  share  of  the.  whole 
tax  burden  and  by  multiplying  the  balance  by  168.94, 
which  represents  the  increase  in  all  tax  levies  under 
this,. the  first  year  of  absolute  socialist  control  in  North 
Dakota. 

The  story  in  a  nutshell  is  told  in  the  following  tables 
•which  were  prepared  by  State  Tax  Commissioner  Wal- 
lace, an  appointee  of  Governor  Frazier's.  and  which 


130  THE  NONPARTISAN  LEAGUE 

may  be  presumed  not  to  have  been  exaggerated  or  dis- 
torted by  Mr.  Wallace  to  the  disadvantage  of  the  so- 
cialists. 

Statement  Showing  Distribution  of  All  Taxes  Levied 
for  all  Purposes  in  North  Dakota  for  the  Year  1918 

• 
0 

8  9 

•   B  .  £ 


N~-  me    of   County 

£  0 

3  :S 

o  c 

.Adams     .                                                 ....$16,486.69  S   76,696.65 

iMIITngs :..„. 63,363.14  189,008.19 

Benson 34,643.28  100,122.66 

Bilings     ;..„'  9,863.46  47,693.96 

Bottineau ~ 43,032.3"  l-'.l,  890.98 

Bowman    17,136.01  83,633.87 

Burke 23,422. 48  .     115,139.69 

Burleigh     :... 44*361.38  181,139.90 

Cass     127,206.64  328,698.31 

Cavalier     .....: 42,619,2;'.  111,289.57 

Dickey     .  37,104.00  89,588.62 

Divide    : I....—.:... 22,087.69  100,741.55 

Dunn    .  25,915.7",  148,277.01 

Bddy     18,634.86  64.863.07 

Bfnmons     26,840.84  127,194.99 

Foster 21,854.00  79,659.37 

Golden    Valley 17,081.20  46,267.54 

Grand     Forks I...  74,676.69  274,356.58 

Grant     26.457.12  163,627.69 

.<lriggs     .  27,201.23  67,244.81 

Hettinger    19,827.7'.'  88,185.58 

Kidder 24,334.97  65,540.40 

LaMoure     35.97G.H7  106,857.03 

Logan     .  16,929.97  63,965.18" 

McHenry'  43,736.31  128,070.83 

Alolntosh     , 19.643.49  53,306.61 

McKenzie     19,409.47  98,613.01 

McLean     :.... 33.lMt.4lt  124,677.23 

fiercer 19.66M.76  127,640.34 

Morton     46,752.70  186,290.34 

Mountrail     .                                        27.428.41  121,974.40 

Nelson         ; 34,426.56  60,l53.54x 

Oliver 11,674.58  56,219.73 

I'embina     .  40,107.94  102,426.23 

Pierce 22,852.32  99,549.6ft 

llamsey     44,537.64  114,992.90 

Ransom     28,508.94  78,160.61 

Renville 20,022.95  152,!*w4.70 

Richland     .  64,444.9^  192,611.17 

Kolette 20,215.30  147,408.68 

-Snrgent     ........  29,703.74  114,036.73 

.Sheridan     „ 16.628.75  56,756.51 

-  Sioux    , 5,500.09  21, 744. §5 

Slope    .  13,792.38  68,200.00 

Stark 31,503.38  154,110.67 

Steele     23,479.45  82,884.47 

Htutsman    74,386.86  194,029.29 

Towner    29,618.34  72,824.22 

Tra>il „...  37,564.01  98,776.43 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       151 


Walsh 

52,986.72 

125,404.34 

63,336.31 

321,617.31' 

Wells 

35,909.64 

140,549,14 

Williams 

41,027.43 

206,503.10 

Total 

1,769,091.65 

«.  371,  310.06 

*City  or 

County, 

00 

o 

.S1 

I 

Is 

• 

rt 

fc-f  2 

*rt     - 

& 

o 

0 

o 

JS 

§* 

I 
i> 

.  02 

^« 

.    OJ 

"3  * 

13 

1r 

"^  ^ 

0^ 

3 

0 

i* 

H 

H 

H 

$   38.891.1S 

$   90,368.23 

$      8,842.18 

$231,284.9?, 

97,087.75 

238,232.35 

63,445.50 

661,136.03 

77,477.86 

169,429.56 

15,991.30 

397,664.6ti 

10,900.08 

51,947.32 

120,404.82 

89,161.28 

218,262.54 

31,586.89 

533,933.9!' 

25,105.39 

83,181.54 

10,071.73 

219,128.54 

50,603.26 

129,446.81 

14/616.08 

333,228.31' 

58,395.  3H 

164,842.00 

72.383.74 

521,122.41 

128,573.05 
90,635.01 

488,298.86 
193,709.40 

269.830.14 
15,186.67 

1342,607.00 
456,459.90 

65,771.82 

127,508.32 

36,688.80 

356.661.54 

21,183.57 

102,797.52 

'    13,373.00 

260,183.32 

.41,795.85 

114,049.18 

10,312.81 

310,350.6<> 

31,016.58 

69,492.55 

13.501.02 

197,508.08 

16,634.84 

119,789.81 

9.667.7f> 

300,128.23 

23,738.46 

104,354.93 

17.875.41 

247,482.17 

34,021.47 

91,807.71 

16.372.80 

205,553.7-2 

95,645.16 

262,096.44 

159,029.42 

865,804.2ft 

30,851.51 

122,269.23 

8.135.41 

341,340.96 

51,266.50 

76,805.88 

15,907.14 

238,425.56 

36,771.76 

320,262.21 

10.156.28 

275,203.62 

19,649.82 

99,864.00 

8,786.20 

218,175.40 

68,035.15 

152,844.90 

30,969.53 

394,682.58 

13,392.35 

70,536.51 

3,980.11 

168,804.12 

73,565.93 

254,936.66 

2,737.69 

527,681.44 

8QJ41.18 

10,735.30 

164,426.5* 

27,951.78 

125,133.97 

6,948.62 

278,056.85 

48,709.92 

201,381.80 

21,665.97 

'429,624.41 

84,607.91 

7,702.11 

239,602.11' 

24,268.34 

167,726.10 

50,767.81 

475,805.25* 

63,030.79 

160,861.97 

16,538.97 

395,834.54 

66,756.02 

150,803.40 

24,154.55 

336,303.07 

1,276.00 

40,387.16 

801.65 

110,350.12 

27,743.13 

126,231.56 

27.664.96 

354,308.41' 

19,472.67 

102,149.14 

12.452.66 

256.476.45 

68,553.17 

192,550.64 

55.081.81 

•175,716.16 

59,455.50 

159,448.00 

21,180.85 

3  4  6,  7  5  3.  9« 

36,212.11 

118,907.97 

16.076.47 

314,184.20 

121,991.54 

178.107.70 

54.679.44 

611,834.8.". 

12,956.50 

96,053.43 

10,629.64 

287,263.55 

63,505.38 

121,859.29 

13.388.40 

342.493.54 

17,241.74 
1,063.09 

77,687.99 
20.501.06 

6,584.09 

174,899.0* 
48  808  7J- 

39,809.58 
19,813.23 

103,650.86 
162,140.56 

8.316.00 
46.899.30 

233.768.82 
414,467.14 

13,944.54 
117,885.85 

93,444.85 
353,324.01 

13,154.58 
•J3.347.24 

226,907.8* 

45,398.00 

123.869.14 

17,632.97 

284'.337!67 

77,446.74 

139,158.49 

29,985.36 

282,931  Or; 

75,113.40 

158,449.04 

42,202.78 

454,156.28 

152 


THE  NONPARTISAN  LEAGUE 


110,782.21 
53,894.09 
83,360.70 

327.900.79 
182,199.25 
252,641.85 

144.977.61 
22,152.15 
33,158.50 

1028,614.24 
434,704.27 
616,691.67 

2589,830.65 

c 

7884,057.57 

1662,961.39 

20277,251.32 

o 

E-i 

^ 

so  _- 

w  C 

CO 

2'3 

«s 

; 

Is 

1° 

11 

c 

-™*s 

w" 

'OQ| 

E- 

fls 

P 

11 

1 

./i 

H 

0 

j. 

1 

.5 

?   231,284.93 

•4,458.37 

682.27. 

15,140.64 

666,277.57 

2,434.87 

417.43 

2,852.30 

400,516.96 

120,404.82 

•  2.179.80- 

23,244.47 

35,424.27 

569,358.26 

219,128.54 

880.86 

880.66 

334,109.18 

V9.340.97 

79,340.97 

600,463.38 

t«0,7  28.67 

66,842.31 

227,570.98 

1570,177.98 

5,990.00 

5,990.00 

462,449.99 

4,604.23 

4,604.23 

361,265.79 

•  -,*>,  98T>.  00 

15,985.00 

276.168.33 

1,674.98 

20,236.00 

21.911.04 

332,261.64 

'       :13,124.80 

23.124.80 

220.632.88 

31.25 

31.25 

300,159.48 

i  3.  6  4  2.  4  4 

13,642.44 

261,124.61 

205.553.72 

y  7,  990.  28 

381.67 

98,371.96 

^64.176.24 

::  11,340.  96 

23N.425.56 

275,203.62 

14,984.85     . 

14.984.xr, 

233.160.25 

M20.29 

8,120.29 

402.802.87 

r 

168.804.12 

23,520.84 

3,262.71 

26,783.  5f. 

r>54,464.99 

1,281.37 

1,281.37 

165,707.95 

278,056  85 

Mi,761.i9 

4,930.68 

21,691.87 

451,316.28 

2,567.23 

i'9,388.59 

4,974.97 

2,567.23 
34,363,56 

242,169.35 
•'.10,168.85 

H.080.45 

11,080.4:. 

406,914.99 

186.82 

186.SL' 

336,489.89 

110.350.12 

..626.54 

•"•,t>2(!  54 

359,934.96 

*>,267;17 

6,267.17 

262,743.62 

>.2,28l:86 

12,281.86 

487,998.02 

'5,436.  41 

1">,436.41 

362.190.31 

-U.9.-6.00 

21.H56.on 

366.140.20 

.  ..081.87 

3,100.07 

24,131.94 

223.44 

31,410.56 

31.  634.  OH 

287I263.55 

:7U  27.54 

'  .341.14 

5.  341.  14 

180,240.22 

48.808.79 

233.768.82 

12,217.32 

12,217.::- 

426.684.46 

:  7,395.08 
492.86 
:.:S,846.07 
3,554.09 
149.76&.03 
4,491.41 
*51.385.lfi 
;•'.'".  003.  3  1 

175,749.42 

31.395.08 
492.86 
38,846.01 
3,554.09 
149,765.63 
4,491.41 
51,385.15 
1080,,  U2.  73 

226,907.S!> 
•S34.368.3S 
294,  830.  53 
421,777.04 
457.710.37 
1178,879.27 
439,195.68 
668,076.82 
21358,004.05 

ITS  BIRTH,  ACTIVITIES  AND  LEADERS 

The  socialists  bunch  promised  to  decrease  the  tax  on 
farm  land  and  the  farmers  were  asked  to  place  the 
socialists  in  power  so  that  the  taxes  might  be  lowered 
so  that  the  farmers  might  get  a  better  deal.  The  farm- 
ers believed  this  outfit  with  the  result  that  he  has  been 
"soaked"  as  he  was  never  soaked  before  in  North  Da- 
kota. 

Statement  Showing  Distribution  of  All  Taxes  Levied 
for  all  Purposes  in  North  Dakota  for  the  Year  1919 


Name   of   County 


H 

6 

>> 

11 


o, 

A 
a 

si 


Adams $  31,761.75 

Barnes    151,792.32 

Benson    '      74,109.90 

Billing*    17,683.48 

B6ttineau 74,690.28 

Bowman    : 28,386.55 

Burke    ..  42,638.11 

Burleigh   84,487.77 

Cass   277,179.13 


Cavalier 
Dickey  .. 
Divide  ... 
Dunn  ..... 
Eddy  .... 
Emmoris 
Foster  ... 
Golden  Valley 


109,030.12 
81,478.27 
38,818.76 
43,842.87 
45,3So.l6 
53,930.79 
50,591.63 
29,748.26 


Grand  Porks   175,092.03 


Grant 

Griggs    .... 

Hetiinger 

Kldder   .... 

LaMoure 

Logan 

McHenry 

Mclntosh 

McKenzie 


54,249.13 

64,898.19 
36,302.51 
48,158.81 
89,825. 5T. 
34,674.60 
79,496.80 
41,865.86 
35,580.36 


McLean  64,859.72 

Mercer     35,254.30 

Morton     .: :... 88,455.34 

Mountraill 50,516.17 

Nelson  .............  82,930.74 

Oliver    . 22,084.14 

Pembina   101,038.46 

Fierce 46,608.31 

Ramsey    _ 100,043. fiS 

Ransom    71  256  20 

Renville 3C857.29 

Richland 153,457.72 

Role-tte 41,518.01 

Sargent    :....: 65,588.70 

Sheridan  32  179  34 


$  74,327.46 
254,725.48 
152,977.84 

52,104.06 
247,883.09 
135,976.44 
135,762.58 
261.612.08 
390,099.95 
131,662.96 

88,417.51 
127,026.11 
146,731.25 

71,787.09 
170,743.35 

88,469.95 

44,906.43 
362,564.65 
167,988.75 

59,832.77 
109,538.85 

99,155.00 
128,247.24 
114,205.84 
200,300.24 

81.398.72 
112,803.06 
232,770.03 
150,378.96 
282.148.48 
179,046.43 
100,094.00 

64.258.91 
123.616.27 
131.738.0S 
Ifi3.277.21 
147.229.04 
108,657.50 
194.R81.72 
167.387.00 
132,17.". 51 

Sfi.738.ft4 


!  40,895.99 
109,50^6.65 
80,521.25 
10,874.65 
32,851.24 
41,454.22 
58,922.20 
73,085.96 
145,602.11 
96,424.91 
71,289.57 
64,247.51 
16,618.66 
33,703/95 
18,683.38 
36,779.94 
36,861.24 
99,741.00 
388,059.91 
50,729.42 
42,071.47 
35,390.00 
81,282.46 
14,340.00 
92,5<84.37 

42,590,55 
r.2,866.88 

23,735.75 
88.093.8& 
70.009.65 

61,070.ir> 
22,277.37 
7.",  041.  36 
71,367.84 
11,831.33 
126,399.46 
12,176.96 
74.580.75 
.'<  0.656.49 


154 


THE  NONP ARTISAN  LEAGUE 


Siouv 

9,346.47 

34,521.02 

741.60 

Stark 

54,099.75 

194,101.15 

21,705.26 

Slope    
Steele 

23,041.07 
59,277.75 

72,200.81 
90,521.48 

53,725.69 
46,495.18 

Stutsrnan        

161,540.81 

237,898.38 

137,361.38 

Towner 

64,366.03 

100,152.52 

52,457.01 

Traill    

93,757.20 

141,567.98 

85.242.OJ> 

AValsh              

129,835.20 

135,530.04 

79,13f».61 

Ward    . 

109,850.60 

324,669.14 

122,959.67 

Wells        '.;  

79,092.37 

142,005.34 

6o.906.90 

Williams 

70,561.66 

239,487.83 

106,357.38 

Totals     

3742,616.08 

7952,002.20 

2985,308.21 

- 


25 

oc 

'flE-i 

c-<  0 

3-s 

gyj 

C*-' 

M« 

$125,750.79     J 
372,003.34 

f   10,186.02 
86,098.59 

$282,922.01      $12,729.45     ] 
974,126.38       23.513.07 

5    32,001.76 
110.07U.50 

277,827.12 

23,202.39 

608,638.50 

16,889.25 

83,097.31 

."•8,594.14 

139,256.33 

5,113.41 

9.828.00 

297,478.48 

93,161.65 

746,064.74 

26,529.48 

109,498.02 

199,616.47 

8,643.78 

389,077.46 

14,969.14 

26,207.85 

180,594.21 

15,638.07 

433,555,17 

14,948.06 

63,161.60 

260,174.54 

102,941.95 

782,302.30 

19,284.41 

57,497.05 

685,958.83 

407,960.26 

1906,800.26 

30.591.69 

94,199.75 

266,552.44 

24,780.03 

628,450.46 

21,540.09 

76,105.00. 

172.141.  6S 

44,647.45 

457,974.48 

16,785.60 

61,547.13 

188,109.91 

13,827.63 

432,029.92 

18,938.37 

82,657.05 

178.192.46 

.    18,309.48 

403,694.72 

16,884.18 

51,384.00 

73,568.61 

44,031.67 

268,476.48 

7.926.02 

40.665.22 

158,494.89 

12,259.89 

414,112.30 

15,213.87 

46,308.62 

149,325.37 

13.089.74 

338,256.63 

9.743.12 

50,986.40 

117,011.67 

17,506.40 

246,034.00 

9,353.05 

25,596.20 

404.682.65 

190.160.91 

1232.241.24 

22.B74.tr, 

87,123.74 

189,958.37 

9.449.60 

454,705.76 

20.046.57 

4-5.140.18 

88.873.3n 

47.539.14 

311,872.91 

10.257.38 

47,984.00 

159,462.30 

12,653.00 

360,028.13 

11.521.02 

47,862.74 

152.196.30 

11,250.00 

340,150.11 

14.014.92 

54,368.89 

246.556.04 

38.785.19 

r.84.896.48 

18.444.78 

97,086.76 

108.306.77 

5.153.20 

276.680.41 

10,135.42 

31.725.75 

324,551.91 

35,647.66 

732.580.98 

24.042.16 

80.073.20 

99.046.95 

11,941.68 

234.253.?! 

10.816.58 

22.354.50 

237.899.79 

12,361.05 

441,234.81 

1S.754.84 

42.103.85 

289.677.70 

24.014.14 

664,188.47 

23,9.33.22 

102,861.75 

120.023.10 

13.877.59 

319.534.04 

7.013.22 

40.123.2* 

240.009  3S 

62.009.37 

696,851.32 

12.907.3:1, 

45.108.24 

231,005.31 

11,402.18 

560.O63.94 

71.976.70 

71.839.00 

195.828.43 

46.713.10 

49  5,  57^" 

14.476.70 

68.866.82 

64.235.94 

824.01 

151  ,#03.  Of. 

5.469.78 

23.385.VU 

196.609.13 

33.875.28 

.tfi.'i09.^n 

18.258.18 

F.6.906.00 

127.353.29 

18.533.04 

r,40,510.04 

13.534.6P 

48.815.05 

262.421.35 

73,477.48 

19.025.81 

72.681.25 

1S2.154.49 

32.375jB"p 

^04  288  37 

12.517.56 

57.997.45 

18"  914  09 

15.74M.01 

fit.  461".  ?  2 

14,928.5.4 

276.859.71 

67.21fl.25 

«t*.514.86 

21.542.44 

69!09l!76 

141,595.84 

12-8  28  1  6 

375.  505:97 

10.227.07 

30.832.7C 

151.181.08 

1T..'l3S.'77 

438.649.81 

13.061.  24 

45.586.76 

106.754.^5 

7.755.61 

2fl8,084.SS 

11,752.86 

47.6flR.P6 

33,342.22 

1.800.37 

79.251.  «8 

2.806.84 

5.000.98 

238.999.41 

56.752.7fi 

5fl5.fl58.32 

12.7R4.8R 

30.976.  00 

118,284.  If! 

8.985.28 

273.137.04 

11.618.7? 

32.452.78 

144.841.13 

21.f08.fV4 

8fl2.844.0R 

10.051.78 

4S.985.8f» 

•157.169.14 

77.fl17.fr* 

1071.B80.Bft 

32.547.57 

120.76^.  14 

1S4.416.75 

1  8.803.1.4 

42ft.19n.4f. 

tS.!T48.1fi 

ITS  BIRTH,  ACTIVITIES  AND  LEADERS 


182448.98         33,465.73       536,481.98        15,077.15 
240266.39          50744.41       635,511.65        Ii0.4157.23 
492741.95       222,542.09     1272,763.45        2X.W4.82 
241.286.30          23,415.09       654,806.00        1  !).;!!»;',.  27 
336,827.30         62,927.20       816,161.37        2ti,rt20.46 
11215219.25     2324,658.76     28219804.50     857,560.19 

59,934.18 
61,064.25 
98,547.04 
76,261.07 
99,141.83 
3102.087.7& 

1  & 

IP 

CO  >»                                                     1J 

M  C                                                      'O*J 

g8 

W^ 

o                           MS 

IH^ 

•a  .". 

9~W  Q 

>dS 

*3*j  > 

'S£                            "3* 

S 

Sin 

£g                            g«j 

S's  '• 

$ 

3                         $                           $ 

327,653.21 

2,359.02 

2,359.02 

1110,068.97 

2,288.01 

2,288.01 

710,913.07 

154,197.74 

12,195.12 

14,990.00                  27.1S5.13- 

909,277.37 

13,396.45 

13J396.45 

443,650.40 

3,982.23 

3,982.23 

515,647.06 

83,549.30 

83,549.30 

942,633.06 

219,227.41 

30,980.63                25n.20S.04 

2281,799.74 

5,664.08 

1,100.92                    6.76.>.in» 

732,860.55 

2,512.96 

L'.:.  12.96 

538,820.17 

17,278.87 

1  7.  LJ7S  S7 

550,904.21 

2,748.82 

1^74S!SL! 

474,711.72 

25,991.27 

25,991.27 

343,058.95) 

37.00 

:{7.0'» 

475,671.7? 

19,201.53 

19  201.53 

418,187.  G8 

10,621.41 

10,623  4J 

291,604.66 

103,475.84 

2,472.93               1^5,948.77 

1447,887.90 

6,470.66 

6,470.6*5 

526,363.17 

1,826.55 

1,  8  26".  5  5 

371,940.84 

1,760.00 

1  7  6  0.  00 

425,171.89 

414,528,42 

5,293.27 

3.679.26                    8,972.53. 

709,200.54 

318,541.58 

22,877.91 

22,  8  7  7.  Ml 

859,574.25 

151.20 

151.20 

267,575.49 

502,093.00 

22,797.65 

22,797.65 

813,281.09 

6,493.72 

6,493.72 

373,164.20 

27,976.43 

27,976.43 

782,338.32 

19,398.91 

668,777.88 

27,955.71 

27',955l71 

606,874.65- 

360.00 

360.00 

180,618.46 

400.49 

530.52                        940.01 

592,313.98 

4,956.32 

4.797.64                    9,753.96 

418,613.74 

14,387.13 

14,387.13 

770.354.V2 

13,185.69 

ia.185.6i9 

588.084.07 

23,163.08 

23,163.0s 

496,759.34 

24,538.34 

24,538.34 

933,687.39 

26.25 

26.25 

416,092.04 

32,570.21                  32,570.21 

529.818.01 

5,067.28 

5,067.28 

327.573.42 

86.559.50 

11,404.14 

11,  404.14 

620,823.34 

24,984.47 

1M.H84..47  ' 

3  4  5,  18  8.0  3 

415.331.16 

29.858.58 

29,858.58 

3254.751.98 

405.83 

":  -05.8?, 

485,113.95 

6,844.07 

618.337.28 

10,727.43 

I«',727.43 

727,740.r.G 

375.74 

1  ,'5  7  ?t~  ~  ~  4 

1536,781.05 

.1.  9  56.  80 

'.\  H5ti  N'II 

fi54.3-17.14 

i'S.027.71 

I  1  072.78                           10/49 

OSl.6j4.1-r, 

1007,200.6 

0                        ^3.89              1  1  1i),(»n  1.58 

21289,457.02 

.156  THE  NONPARTISAN  LEAGUE 

According  to  a  compilation  of  the  State  Tax  Com-- 
inissinner,  in  1918  farm  land  exclusive  of  improvements 
l)o n-  54.89  per  cent  of  the  total  tax  burden,  while  in 
391.9  it  bore  70.36  per  cent.     In  other  words,  in  1918 
farm  lands  bore  $ll,197.:>Sf).r>4  of  the  total  tax  burden 
while  in  1919  the  burden  borne  by  them  had  increased 
to  $19,  742.WK-i.49;  a  total  burden  in  1918  of  77.22  per 
cent.     This  percentage  indicates  both  the  shifting  of  the 
lax  incident  and  the  increase   in   the  tax  burden.     It 
means  that   the  farmers'  tax  bill  has  been  increased 
on  his  real  estate  by  more  than  77  per  cent  during  the 
last  year.. This  important  subject  causes  me  to  repeat: 
To  be  sure  there  are  some  offsets  to  this  increase. 
There  is  a  slight  shift  from  farm  personalty  to  other 
.personalty.     In  1918  farm  improvements  paid  1.967  per 
cent   of   the   total   tax    burden.       Assuming   that  that 
ratio  would  have  held  good  in  1919,  according  to  the 
State   Tax   Commissioner  in   1918   farm  personal  pro- 
erty  paid  9.183  per  cent  of  the  total  burden  or,  $1,873,- 
'332.00.     Here  also  is  a  saving  to  the  owner  of  acre  prop- 
erty of  $864,4f>4.00.     Adding  this  to  the  saving  on  farm 
improvements  we  get  a  total  saving  of  $1,429,033.00.. 
Deducting  this  from  the  total  1919  burden  upon  acre 
property  we  get  $19,742,903.00  offsetting  the  burden 
on  farm  land  to  that  extent,  we  reduce  it  to  $18,313,- 
870.00,  or  64.45  per  cent.     THIS  FIGURE  64.45  PER 
CENT  REPRESENTS  THE  ACTUAL  AVERAGE  IN- 
CKEA8E  OF  THE  STATE  IN  THE  TAX  BURDEN 
UPON  FARM  LANDS. 

The  following  compilation  made  by  Secretary  L.  A. 
Baker  of  the  State  Tax  Commission  indicates  the  dis- 
tribution of  the  total  tax  burden  for  .the  years  1918  and 
1919.  It  will  be  noted  that  there  has  been  a  decrease 
in  the  burden  borne  by  every  class  of  property  ex- 
cept farm  lands.  t 

Percentage    borne     Percentage    borne 


ITS  BIUTH.  ACTIVITIES  AM>  LEADERS      157 

by  several   classes     by  several  classes 
of   property   in          of  property  in 

1«M.,s  1919 
Farm   lands  exclusive  of  im- 
provements       54.H!)  70.36 

Improvements     on     .farm 

lands  1.967 

Town  and  city  lots  ex- 
clusive of   improvements     :;.<S02  3.395 
improvements  on  town  and 

city    lots   5.10  3.426 

Personal    14.037  7.812 

.Railway 19.297  14.343 

The  Socialist  press  in  combating  the  truth  about 
the  taxes  time  and  time  without  number  stated  that 
the  reason  for  tho  high  taxes  laid  with  the  local  board. 
Here  is  the  truth  about  the  rise  in  state  taxes, county  by 
county,  hail  tax  not  included. 

Xame  of  County  Total  State       Total  State 

Taxes  1918      Taxes  1919 

Adams    $     16,486.69      $     81,761.75 

Barnes      63?363.14          151,792.32 

Benson  34.643.2S  74,109.90 

Billings 9,863.46  17,683.48 

Bottineau   43.032.30  74,690.28 

Bowman 17,136.01  28,386.55 

Jiurke 23.422.48  42,638.11 

Burleio-h    44.361. :>,S  S4, 487.77 

Cass 127,206.64         277,179.13 

( 'a valier    42,619.25          109,030.12 

I  )iekey  37,104.00  81,478.27 

Divide  22,087.69  38,818.76 

Dunn   25,915.75  43,842.87 

Eddy  18,634.86  45,385.16 

Emmons   26,840.84  53,930.79 

Foster   .  21,854.00  50,591.63 


158 


THE  NONPARTISAN  LEAGUE 


Golden  Valley  , 17,081.20  29,748.26 

Grand  Forks  74,676.69  175,092.03 

Grant    26,457.12  54,219.13 

Griggs  , 27,201.23  64,898.19 

Hettinger  19,827.79  36,302.51 

Kidder   24,334.97  48,158.81 

LaMoure  35,975.97  89,825.55 

Logan   16,929.97  34,674.60 

McHenry 43,736.31  79,496.80 

Mclntosh 19,643.49  41,865.86 

McKenzie 19,409.47  35,580.36 

McLean  33,189.49  64,859.72 

Mercer    .. 19,651.76  35,254.39 

Morton  .". 46,752.70  88,455.34 

Mountrail 27,428.41  50,516.17 

Nelson  34,426.56  82,930.74 

Oliver 11,674.58  22,084.14 

Pembina   ...: 40,107.94  101,038.46 

Pierce   22,852.32  46,608.31 

Ramsey  44,537.64  100,043.65 

Ransom  ..'. 28,508.94  71,256.20 

Renville 20,022.95  36,357.29 

Riehlaiid  64,444.98  153,457.72 

Rolette 20,215.30  41,518.01 

Sargent 29,703.74  65,588.70 

Sheridan 16,628.75  32,179.34 

Sioux 5,500.09  9,346.47 

Slope  , 13,792.38  54,099.75 

Stark 31,503.38  23,041.07 

Steele   23,479.45  59,277.75 

Stutsman 74,386.86  161,540.81 

Towner   ?. 29,613.34  64,366.03 

Traill 37,564..01  93,757.20 

Walsh  52,986.72  129,835.20 

Ward  63,336.31  109,850.60 

Wells  35,909.64  79,092.37 


ITS  imrnr,  ACTIVITIES  AND  LEADERS     159 

Williams  41,027.43  70,561.66 

Total  $1,769,091.65  $3,742,616.08 

Any  agitator  who  goes  out  into  Minnesota,  Montana 
or  Utah  and  tells  how  the  farmers  of  North  Dakota 
were  benefited  by  the  Socialist  regime  in  taxation  de- 
liberately lies.  The  above  figures  rae  official,  taken 
.tin nn  ther  ecords,  and  are  conclusive  proof. 

Another  bit  of  propaganda  which  they  have 'been, 
spreading  is  that  even  though  North  Dakota  taxes  have 
gone  way  up  they  have  gone  up  in  other  states  as  well. 
The  records  show  that  in  NO  OTHER  STATE  IN 
THK  NORTHWEST  HAS  THERE  BEEN  THE 
LARGE  INCREASE  THAT  HAS  OCCURRED  IN 
NORTH  DAKOTA. 

The  increase  in  taxes  is  alarming  to  the  farmers. 
Something  must  be  done  to  lull  them  into  fancied 
security  and  therefore  to  distract  tlie  farmer's  mind 
from  the  ultimate  result  the  Socialist  leaders  find 
"crook  after  crook"  and  "traitor  after  traitor." 

SUKKLY  TIIK  MKX  WHOM  THE  SOCIAL- 
IST LEADERS  ARE  BRANDING  ARE  NOT  ALL 
<•  rooks,  scoundrels,  thieves  and  looters.  As  a  MATTER 
OF  FACT  MOST  OF  THEM  ARE  THE  BEST 
PK1ENDS  THAT  THE  FARMERS  OF  NORTH  DA- 
KOTA  HAD  DURING  THE  TRYING  PERIOD  OF 
THE  LAST  THREE  YEARS. 


160  THE  NONP ARTISAN  LEAGUE 

CHAPTER  IX 

HOW  THE  LEADERS  PEAR  THE  WITNESS  STAND 

The  Socialist  leaders  hate,  oh  so  much,  to  be  under 
oath.  While  they  are  shrewd,  coldly  calculating,  and 
ghoul  like  in  their  desperate,  almost  animal  like  hate, 
of  all  honest  opposition,  yet  when  you  get  them  in  a 
position  where  they  can  be  questioned,  they  become 
ridiculous,  very  small  and  to  a  man  with  average  intelli- 
gence, contemptible. 

For  instance,  here  is  Towiiley's  testimony  amder  oath 
given  on  the  first  day  of  May,  1918,  when  he  was  UN- 
EXPECTEDLY ASKED  A  FEW  ECONOMIC  QUES- 
TIONS. Townley  poses  as  a  great  economic  reformer, 
WANTING  CERTAIN  DEFINITE  ECONOMIC 
CHANGES,  YET  UPON  BEING  ASKED  BY  THE 
ACTING  CHAIRMAN  TO  DEFINE  THE  "INDUST- 
RIAL DEMOCRACY"  WHICH  HIS  ENTIRE  CAM- 
PAIGN IN  NORTH  DAKOTA  HAS  BEEN  BASED 
UPON  for  4  YEARS,  as  shown  on  Page  79  of  the  hear- 
ing before  the  Committee  on  Military  Affairs,  he  madfr 
the  following  statements: 

Townley— '/By  an  industrial  democracy,  I  under- 
stand it  to  be  an  industrial  condition  that  produces 
raw  material  and  delivers  it  to  the  consumer  without 
anybody  on  the  way  taking  unjust  profits,  either  for 
necessary  or  unnecessary  service. 

Acting  Chairman — That  is  what  they  tried  to  do  in 
Russia  and  that  is  what  you  commended? 

Townley — I  understand  this  is  what  they  were  try- 
ing to  do  in  Russia.  This  is  my  interpretation  of  their 
activity  over  there.  If  you  will  permit  me,  I  will  state 
that  T  have  a  brother-in-law  in  Minnesota.  I  saw  him 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       161 

the  other  day  and  talked  to  him.  He  had  a  calf  and 
the  calf  had  died.  He  took  the  calf's  hide  into  the 
market  and  got,  I  think  $3.25  for  the  hide.  Now,  a 
set  of  harness  costs  him  nearly  $100.00.  He  fed  that 
calf  hay  at  the  cost  of  $15.00  a  ton.  That  is  not  in- 
dustrial democracy. 

Senator  Wadsworth — How  old  was  the  calf? 

Mr.  Townley— The  hide  weighed  about  33 y2  pounds. 

Acting  Chairman — What  would  be  industrial  democ- 
racy as  applied  to  that  calf?  (Laughter) 

Townley— Well,  that  is  just  the  way  to  get  at  it.  We 
used  some  ago  to  be  able  to  take  a  calf's  hide  from  the 
farmer,  pay  him  five  or  six  dollars  for  it,  and  manu- 
facture it  into  harness,  and  get  the  harness  ba»: 
$25  or  $30. 

Senator  Reed— AY  hen  did  you  get  $a.OO  for  ;i 
hide? 

Townley — Well,  there  is  a  large  difference  be- 
calv 

Senator   \Va<N worth— Was  this  the  calf 's  skin  ' 

Townley— Let  us  apply  it  to  a  full  grown  si 

Senator  Reed — They  do  not  take  a  calf's  skin  to  otak< 
harness. 

Townley — Well,  let  us  take  a  sten: 

ttor  Reed — You  talked  about  getting  $5  or  $(>  for 
the  calf's  hide  and  getting  Ilie  harness  back  for  $25  or 
$30.  In  1lie  first  place,  evei-ybody  knows  that,  you  do 
not  make  harness  out  of  calf's  skin.  At  what  period 
of  the  world's  history  was  that  true? 

Townley — I  have  not  the  exact  figures  to  discuss  this 
thing  definitely  and  say  as  to  either  now  or  twenty 
years  ago.  However,  this  calf's  hide  is  made  into 
harness,  shoes  or  some  kind  of  leather  goods. 

Senator  Reed — When  was  it  that  you  could  get  $6 
for  a  calf's  hide  and  the  harness  would  cost  $25  or  $30.. 

Townley — If  the  hearing  is  extended  until  tomrnor- 


162  THE  NONPABTISAN  LEAGUE 

row,. I  might  be  able  to  dig  up  some  definite  informa-    ; 
tion. 

Acting  Chairman — Wasn't  that  rather  a  reckless 
statement  ?. 

Townley — Let  us  amend  it  then. 

Acting  Chairman— How  would  you  amend  it? 

Townley — I  would  amend  it  by  saying  that  two  or 
tfrree  or  four  years  ago  a  calf 's "hide  would  bring  about 
what  it  brings  now,  or  more  or  less,  but  that  the  pro- 
ducts made  out  of  the  calf's  hide  would  sell  to  the 
people  are  paying  now.  Take  the  matter  of  shoes  for 
instance. 

Senator  Reed— I  thing  that  is  a  safe  statement,  be- 
cause you  say  the  calf's  hide  two  or  three  years  ago 
would  bring  the  same  as  now,  or  more  or  less. 

Townley — I  am  sorry  we  got  talking  about  the  calf. 
Let  us  talk  about  wheat.  I  know  something  about 
wheat. 

Senator  Weeks — I  move  we  bury  the  calf  (laugh- 
ter)". 

Comment  on  the  above  would  be  useless.  It  speaks 
for  itself.  A  man  who  would  testify  in  this  way  does 
not  represent  the  farmers  of  North  Dakota.  The  rest 
of  the  testimony  was  all  the  same.  About  wheat  he 
knew  even  less  than  about  the  calf. 

The  socialist  leaders  get  wiser  by  their  experience 
and  when  Townley  was  arrested  and  tried  before  a  jury 
made  up  of  twelve  farmers  at  Jackson,  Minnesota,  for 
the  crime  of  violating  the  state  law  against  interfering 
with  enlistments,  Townley  and  his  lawyers  thought  it 
would  be  better  to  let  the  other  fellows  do  the  testify- 
ing and  so  among  the  men  they  get  there  to  testify  in 
his  behalf  was  John  Baer,  whom  Townley  had  sent  to 
Congress :  John  Hagen,  Commissioner  of  Agriculture 
«md  Labor;  W.A.Anderson,  the  Socialist  Park  Commis- 
sioner of  Minneapolis,  whom  Townley  afterwards  ffot 


ITS  BIKTH,  ACTIVITIES  AND  LEADERS       163 

Frazier  to  make  Secretary  of  the  Industrial  Commis- 
sion of  North  Dakota,  and  attorney  for  the  Bank  ot 
North  Dakota  at  $5,000.00  per  year,  the  same  salary 
that  the  governor  gets,  and  men  of  that,  stripe.  TOWN- 
LEY  DID  NOT  DARE  GET  ON  THE  WITNESS 
STAND  HIMSELF.  Charged  with  crime,  he  didn't, 
dare  get  up  before  those  twelve  farmers  and  give  his 
testimony.  He  didn't  dare  say  that  he  was  not  guilty. 

And  why? 

Why  should  any  honest  man  fear  to  get  up  before 
twelve  farmers  and  tell  the  truth? 

Last  November,  down  at  Fargo,  I  arrested  Townley's 
Hank  President.  II.  -I.  Ilagan  of  the  Scandinavian  Am- 
erican Rank.  lie  was  tried  before  a  jury,  the  majority 
of  whom  were  fanners.  This  jury  .like  the  one  in 
Minnesota,  was  passed  by  Townley  and  his  lawyers  as 
entirely  satisfactory.  They  had  two  pre-emptory 
challenges  to  every  one  the.  state  had.  and  yet  Hagan 
didn't  dare  get  on  the  witness  stand  Why?  Facing' 
the  state  penitentiary,  with  Townley 's  lawyers  defend- 
ing him,  with  James  Manahan  brought  from  St.  Paul 
to  defend  his  case  and  William  Lemke  assisting,  they 
didn't  let  Hagan  get  on  the  witness  stand  under  oath... 
The  ease  was  tried  before  a  judge  appointed  by  (iover- 
nor  Frazier.  and  even  then  they  didn't  let  J lagan  get, 
on  the  stand. 

Townioy  in  a  campaign  speech,  only  a  few  weeks  a,go 
said  "If  Fra/ier  is  defeated  for  (iovernor,  Fra/ier  will 
go  back  to  the  farm  and  I  will,  go  to  the  penitentiary." 
At  New  Salem,  only  a  little  "while  ago.  he  said  :  "They 
say  I  am  a  crook.  I  admit  it." 

Has  the  day  come  in  North  Dakota  when  an  honest 
man  elected  to  office,  when  honest  farmers  doing  an 
honest  days  work,  when  business  men  taking  an  honest 
profit  when  officials  elected  by  the  people  of  North 
Dakota  are  unable  to  go  out.  and  light  the  profiteer, 


164  THE  NONPARTISAN  LEAGUE 

and  grain  gamblers  WITHOUT  HAVING  TO  TAKE 

ORDERS  FROM  A  MAN  WHO  ADMITS  HE  IS    A 

OROOKf 

William  Lemke  one  of  the  executive  committee  of 
three  which  runs  the  Nonpartisan  League,  only  a  few 
days  ago  subpoenaed  to  appear  before  the  court  in 
in  the  case  of  State  of  North  Dakota  vs.  J.  W.  Brinton, 
was  afraid  to  testify  under  oath.  Lemke  the  man 
whose  personal  notes  Mr.  Brinton  charged  were  sent 
by  the  Scandinavian  American  Bank  to  the  Bank  of 
North  Dakota  and  accepted  by  Cathro,  refused  to  testi- 

fy. 

Lemke  afraid  of  the  witness  stand  although  Brinton, 
the  late  private  secretary  of  Townley  accused  him  in 
writing  over  his  signature  of  being  "CROOKED" 
WITH  THE  MEMBERS  OF  THE  ORGANIZATION 
AND  THE  BANK  OF  NORTH  DAKOTA. 

Lemke  who  Mr.  Brinton  said  was  interested  in  a 
large  number  of  corporations  ,the  paper  of  which 
"FOUND  ITS  WAY  INTO  THE  STATE  INSTITU- 
TION "  AND  WAS  ACCEPTED  BY  MR.  CATHRO, 
RENIGED. 

LEMKE  WHO  MR.  BRINTON  CHARGED  WAS 
BORROWING  FUNDS  OF  THE  STATE  BANK  OF 
NORTH  DAKOTA  TO  PROMOTE  VARIOUS  ENTER- 
PRISES DID  NOT  DARE  GET  ON  THE  WITNESS 
STAND.  , 

WHY? 

Was  Lemke  afraid  HE  WOULD  BE  ARRESTED 
FOR  PERJURY? 

Was  Lemke  afraid  that  under  oath  he  would  have  to 
ADMIT  THAT  HE  HAD  BORROWED  HUGE  SUMS 
OF  MONEY  FROM  THE  BANK  OF  NORTH  DAK- 
OTA FOR  HIS  PRIVATE  CORPORATIONS? 

Was  Lemke  afraid  he  would  be  questioned  about  liow 
the  SCANDINAVIAN  AMERICAN  BANK  OF  FARGO 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       165 

SENT  HIS  PERSONAL  NOTES  TO  THE  BANK  OF 
NORTH  DAKOTA? 

"Was  Lemke  afraid  that  his  late  associate  Mr.  Brin- 
ton  HAD  "THE  GOODS"  ON  HIM? 

Did  Lemke  fear  Brinton 's  cross-examination? 

Was  Lemke  afraid  that  he  would  have  to  admit 
THAT  CATHRO  WITH  HIS  CONNIVANCE  HAD 
LIED  TO  THE  PEOPLE? 

Was  Lemke  afraid  that  Brinton  would  ask  him  about 
the  $60,000  that  was  sent  to  the  bank  at  Minneapolis 
iliat  Lemke  and  Townley  could  in  turn  indirectly 
borrow  it? 

WOULD  ANY  HONEST  MAN  OF  NORTH  DAKOTA, 
IF  HE  HAD  NOTHING  TO  CONCEAL  BE  AFRAID 
TO  GET  ON  THE  WITNESS  STAND  IN  RESPONSE 
TO  A  SUBPEONA? 

Why  should  Lemke,  A  LAWYER,  be  afraid  of  Brin- 
ton WHO  IS  NOT  A  LAWYER? 

F.  W.  Cathro  was  subpoenaed  in  this  same  law  suit, 
He.  brought  with  him  when  he  came  into  court,  W.  A. 
Anderson,  a  socialist  lawyer  from  Minnesota,  who  is 
on  the  pay  roll  at  $5,000.00  a  year.  Anderson  object- 
ed to  Cathro  testifying  at  all.  The  record  shows  that 
he  told  Cathro  not  to  answer  questions  dealing  with 
the  Bank  of  North  Dakota,  some  of  the  money  of  which 
Brinton  ACCUSED  CATHRO  OF  EMBEZZLING. 

The  record  shows  that  Cathro  answered  only  when 
the  court  compelled  him  to,  and  Cathro  admitted  under 
/oath  that  in  April  1919,  at  the  very  time  when  the 
farmers  of  North  Dakota  were  notified  that  the  loans 
could  not  be  made,  (they  said  because  the  Bank  of 
North  Dakota  did  not  have  any  money,)  that  the  Bank 
carried  APPROXIMATELY  FOUR  MILLION 
DOLLARS  ON  DEPOSIT  IN  THE  FIRST  NATIONAL 
BANK  OF  MINNEAPOLIS,  and  Brinton  charged  him 


166  THE  NONPART1SAN  LEAGUE 

with  carrying  MILLIONS  OF  DOLLARS  MORE  IN 
OTHER  BANKS. 

Why  did  Cathro  and  the  League  leaders  have  Ander- 
son there  telling  Cathro  how  to  answer  IP  IT  WAS 
NOT  TO  HIDE  THE  TRUE  CONDITION  OF  THE 
BANK? 

Did  Cathro  not  want  to  testify  so  that  the  farmers 
would  not  know  that  he  had  taken  millions  of  dollars 
from  the  banks  OF  NORTH  DAKOTA  WHICH 
WOULD  PAY  FOUR  PER  CENT  INTEREST  AND 
SENT  THE  MONEY  TO  BANKS  OUTSIDE  THE 
STATE  WHICH  PAID  TWO  PER  CENT? 

Brintoii  charged  and  charged  openly  in  court  that 
Cathro  and  others  received  the  benefit  made  from  those 
huge  deposits  beyond  our  borders,  AND  CATHRO 
DID  NOT  DENY  IT. 

Why  in  that  trial  was  the  socialist  attorney  for  the 
Bank  of  North  Dakota  afraid  to  let  in  any  testimony 
about  the  BANK  OF  NORTH  DAKOTA  SENDING  AN 
EMPLOYEE  AT  STATE  EXPENSE  TO  FLORIDA. 

Down  in  Jackson,  Minnesota,  Townley  charged  with 
a  crime  that  during  time  of  war  in  my  opinion  is  worse 
than  murder,  DID  NOT  DARE  GET  ON  THE  WIT- 
NESS STAND  I 

Why? 

W7as  he  afraid  that  they  would  ask  him  about  Ips  con- 
nection with  Debs? 

Was  he  afraid  that  they  would  ask  him  about  the 
connection  of  Bill  Haywood? 

Was  he  afraid  that  the  prosecuting  attorney  would 
ask  him  to  explain  why  D.  C.  Coates  "Foxy  Dave," 
was  brought  into  North  Dakota;  the  same  " Foxy- 
Dave  "  who  in  1905  had  helped  Bill  Haywood  organize 
the  I.  W.  WT.  ? 

Was  he  afraid  that  he  would  be  asked  about  the 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       167 

DEAL  he  attempted  to  put  over  with  Industrial  Union 
No.  400  OF  THE  I.  W.  W.? 

Was  he  afraid  that  he  would  be  asked  about  the  com- 
mittee he  appointed  to  meet  a  COMMITTE  APPOINT- 
ED BY  THE  I.  W.  W.  IN  FURTHERANCE  OF  A  COM- 
MON PURPOSE? 

Was  he  afraid  that  he  would  be  asked  how  he  sent 
a  personal  representative  to  meet  with  the  I.  W.  W. 
to  get  their  support.? 

.  Was  he  afraid  he  would  be  asked  about  the  meet- 
ings he  arranged  to  put  over  the  I.  W.  W.  deal  in  which 
John  Hagan  and  "Foxy  Dave"  were  involved? 

Was  he  afraid  that  if  he  were  on  the  witness  stand 
that  he  would  have  to  admit  that  if  his  bargain  with 
the  I.  W.  W.  had  gone  through  that  the  farmers  of 
North  Dakota  would  have  had  to  pay  from  five  to 
six  dollars  instead  of  three  to  four  dollars  in  1917  for  a 
days  work? 

Was  he  afraid  that  the  agreement  with  the  I.  W. 
W.  would  BECOME  PUBLIC?  The  agreement  where- 
by the  LEAGUE  FARMERS  OF  NORTH  DAKOTA 
WOULD  HIRE  ONLY  MEMBERS  OF  THE  I.  W.  W. 
TO  WORK  FOR  THEM  IN  EXCHANGE  FOR  WHICH 
THE  I.  W.  W's  AGREED  TO  WORK  ONLY  FOR 
FARMERS  WHO  BELONGED  TO  THE  LEAGUE  ? 

Was  he  afraid  that  he  would  be  asked  about  the 
letter  written  by  his  Executive  Secretary  to  Bill  Hay- 
wood  ? 

Was  he  afraid  of  being  asked  under  oath  about  the 
trip  that  he  took  to  attend  the  American  Federation 
of  Labor  meeting,  at  Buffalo,  New  York,  where  he 
went  to  attack  Sam  Gompers? 

Was  he  afraid  of  having  to  admit  under  oath  that 
he  was  in  favor  of  the  "revolution"  advocated  by  his 
executive  secretary  in  writing  and  which  was  endorsed 
by  Governor  Frazier  in  a  labor  day  speech  at  Bismarck 


168  THE  NONPARTISAN  LEAGUE 

North  Dakota,  a  year  ago.  The  Governor  taking  the 
words  out  of  Townley's  mouth,  when  he  advocated  a 
revolution  by  force,  provided  the  majority  of  the  people 
voted  the  other  way  ? 

And  in  the  trial  at  Bismarck,  when  I  as  Attorney 
General  offered  to  let  him  name  any  attorney  in  the 
state  of  North  Dakota  to  prosecute  Mr.  Brinton,  the 
attorney  being  thus  able,  as  Assistant  Attorney  General 
to  arest  Brinton  in  any  county  in  the  state,  and  try 
him  before  any  jury  in  the  state,  Townley  was  afraid 
to  accept  and  replied  that  it  was  a  "frame  up." 

I  ask  any  honest  man  how  it  could  possibly  be  a 
"frame  up  ".when  Townley  could  name  Lemke  to 
prosecute  Brinton  and  arrest  him  in  any  county  and 
try  him  before  a  jury  he,  as  attorney,  could  select? 

Wasn  't  the  truth  rather  that  Townley  was  afraid 
to  get  on  the  witness  stand  under  oath  where  Brinton 
could  ask  Townley  whether  HE  USED  OUR  MONEY 
TO  BUY  22,040  ACRES  OF  LAND  IN  FLORIDA? 

Wasn't  Townley  afraid  that  he  would  be  asked  to 
explain  whether  his  Private  Secretary  O'Leary  was 
wiring  OUR  MONEY  TO  FLORIDA,  OR  TOWNLEY'S 
-ALTHOUGH  TOWNLEY  WAS  JUST  GOING 
THROUGH  BANKRUPTCY  AT  THE  TIME? 

Was  he  afraid  of  being  asked  whether  Jack  Hastings 
his  former  financial  secretary,  the  man  whom  he  has 
called  a  crook,  since  the  expose  of  the  Valley  City  Bank 
deal,  has  either  directly  or  indirectly  ONLY  LATELY 
been  under  his  pay  or  that  of  his  allied  associations? 

Was  he  afraid  of  being  asked  about  the  "shake 
down"  meeting  dealing  with  the  Scandinavian  Ameri- 
can Bank  of  Fargo? 

Ws  he  afraid  of  being  asked  to  explain  how  it  hap- 
pened that  Hastings,  his  financial  secretary  at  that 
time,  and  the  Hastings  outfit  got  approximately  $20,000 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       169 

for  one  weeks  work  in  the  organization  of  the  Valley 
City  Bank.? 

Was  he  afraid  of  being  asked  to  explain  how  it 
happened  that  Hastings  stated  to  the  Banking  Board 
that  HE  WAS  SENT  TO  VALLEY  CITY  BY  TOWN- 
LEY? 

Ws  he  afraid  of  being  asked  to  explain  how  it  hap- 
pened that  they  were  obliged  to  return  the  $15,026.91 
GOTTEN  FROM  THE  FARMERS  IN  THE  SAME 
DEAL— HOW  MR,  HALL  AND  I  MADE  THEM  RE- 
TURN  IT  TO  THE  FARMERS? 

Was  he  afraid  he  would  be  asked  to  explain  how  it 
happened  that  Cashier  Aamoth  of  Valley  City  testified 
UNDER  OATH  that  Box  told  him  that  after  Olson  got 
his  share,  the  balance  of  the  $15,026.91  was  to  be  divid- 
ed into  four  parts  and  that  after  he  and  Hastings  had 
GOT  THEIR  SHARE  TOWNLEY  AND  LEMKE  GOT 
THEIRS? 

Was  he  afraid  he  would  be  asked  to  explain  how  it 
happened  that  four  checks  were  written  and  cashed 
which  actually  did  divide  the  $15,026.91  that  way? 

Was  he  afraid  he  would  be  asked  to  explain  how  it 
happened  that  Bank  Examiner  Halldorson  whom  Lof- 
tlius  has  fired  for  being  honest,  assisted  in  getting  Hall 
and  myself  in  getting  the  evidence  in  that  deal? 

Was  he  afraid  he  would  be  asked  to  explain  how  it 
happened  that  in  addition  to  the  $20,000  commission 
and  $15,026.91  that  was  taken  that  they  also  had  to 
pay  in  cash  amounting  to  $36,375,  to  replace  notes  that 
wore  either  worthless  or  nearly  worthless? 

Was  he  afraid  of  being  asked  to  explain  how  it  hap- 
pened that  although  Waters  testified  before  the  Fed- 
eral grand  jury  at  Fargo,  and  presumably  told  all  he 
knew  to  the  Federal  Grand  jury  that  after  he  testifi- 
ed there  he  wrote  to  H.  J.  Hagan  of  the  Scandinavian 
American  Bank  saying  that  if  Hastings  was  looking  for 


170  THE  NONP  ARTISAN  LEAGUE 

trouble  he  would  find  it  "because  Hastings  is  not  out  of 
the  woods  yet.  THERE  ARE  STILL  SOME  THINGS 
TO  COME  BEFORE  THE  FEDERAL  GRAND  JURY?' > 

Was  ho  afraid  that  he  would  be  asked  to  explain  how 
it  happened  that  "his  governor "  voted  "no"  when  it 
came  to  taking  the  farmers  and  public  into  our  con- 
fidence and  showing  all  the  banking  board  records  of 
the  Valley  City  deal  to  them? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Waters  said  that  everything  in 
the  Valley  City  Bank  deal  was  "legitimate,  fair  and 
honest,"  and  how  six  weeks  after  that  he  was  taking 
the  credit  for  bringing  the  graft  to  the  light  of  day  ? 

Was  he  afraid  that  he  would  be  asked  to  explain  how 
it  .happened  that  Waters  was  made  manager  of  the 
Bank  of  North  Dakota  to  handle  from  twenty  to  thirty 
million  dollars  of  our  school,  village,  township,  city 
and  state  funds,  all  your  tax  money? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Waters,  who  had  run  a  lively 
stable  in  Iowa  before  he  came  to  North  Dakofa,  and 
who  never  ran  a  bank  a  day  in  his  life,  was  made  bank 
examiner  ? 

Was  he  afraid  he  would  be  asked  to  explain  how 
it  happened  that  Waters,  Townley  and  Congressman 
Baer  were  pals  at  Beach? 

.Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Halliday,  for  Waters,  *  tipped 
off*  the  Scandinavian  Amreican  Bank  whenever  R-D 
examination  ws  to  take  place? 

Was  he  afraid  that  he  \vould  be  asked  to  explain 
what  Halliday  meant  by  'shoot  it  to  the  other  league 
banks  and  take  it  back  later"? 

Was  he  afraid  that  he  would  be  asked  to  explain 
it  happened  that  thousands  o-f    dollars    af  the 


ITO  BIRTH,  ACTIVITIES  AND  LEADERS       171 

was  in  the  Scandinavian  American  Bank  of 


Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  the  United  States  Sisal  Trust 
of  which  Waters  is  the  manager  and  which  was  not 
admitted  to  do  business  in  North  Dakota  could  illegally 
borrow  $12,000.00  from  the  Scandinavian  American 
Bank? 

1  "Was  he  afraid  that  he  would  be  asked  to  explain 
kow  it  happened  that  Cashier  Sherman  borrowed  near- 
ly $13,000  and  H.  J.  Hagan  the  president  of  the  bank 
borrowed  over  $10,000  contrary  to  law  ? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  the  excess  loans  alone  amounted 
to  over  $734,000  although  the  bank  had  a  capital  of 
'but  $50,000?.  * 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  there  was  nearly  $170,000  in  notes 
listed  as  assets  in  the  bank  which  were  past  due 


Was  he  afraid  that  he  would  be  asked  to  explain 
kow  it  happened  that  about  $104,000  worth  of  this 
T>ap€r  was  in  the  hands  of  lawyers,  not  banks,  for  col- 
Vetion? 

Was  lie  afraid  that  he  would  be  asked  to  explain 
}iow  it  happened  that  in  addition  to  the  above  they  had 
o*er  $46,000  in  bad  debts? 

Was  he  afraid  that  he  would  be  asked  to  explain 

fe-ow  it  happened  that  over  a  quarter  million  dollars 

•  'ollateral  which  was  supposed  to  be  in  the  bank 

;is>  securty   for  notcvs   signed   by   some   of   the   dum- 

KIKJS,  was  not  there  at  all? 

Was  he  afraid  tha4  he  would  be  asked  to  explain 
v  it  happened  that  a  woman  in  the  employ  of 
out-fit,  had  f*ee  access,  to  the  back  acd  had 


172  THE  NONPARTISAN  LEAGUE 

charge  of  hundreds  of  thousands  of  dollars  worth  of 
collateral  and  that  the  woman  was  not  even  bonded? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  P.  R.  Sherman,  cashier  of  the 
bank,  certified  to  the  bank  after  bank  in  North  Dako- 
ta that  there  was  $2,000  worth  of  collateral  for  every 
thousand  dollar  note  that  Townley's  gang  could  induce 
some  banker  to  sign,  when  as  a  matter  of  fact  Sherman 
knew  that  that  much  collateral  was  not  there? 

Ws  he  afraid  that  he  would  be  sked  to  explain  how 
it  happened  that  the  Scandinavian  American  Bank  had 
57  shares  of  stock  illegally  as  collateral  to  notes  in  their 
own  bank? 

Was  he  afraid  that  he  would  be  asked  to  explain  how 
it  happened  that  he  himself  could  take  thousands  of 
dollars  in  notes  given  to  the  -Consumers  United  Stores 
company  on  his  collection  trip  and  there  deceive  the 
farmers  by  saying  that  'Big  Bis'  says  that  your  note 
was  sold.  It  was  not  sold  at  all.  "  Here  it  is?" 

Was  he  afraid  that  he  would  be  asked  to  explain  how 
it  happened  that  the  attorney  general  was  not  allowed 
to  proceed  before  Judge  Cole  to  show  up  the  real  sit- 
uation of  the  Scandinavian  American  Bank  as  Section 
7990  and  8004  C.  L.  1913  of  the  law. provides? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  he,  Towiiley,  in  March,  came  over 
his  signature  in  the  North  Dakota  Leader,  saying  that 
the  league  was  not.  in  any  way  interested  in  banks, 
then  suddenly  got  the  farmers  together  to  'save  their 
bank'  although  the  record  shows  that  scarcely  a 
single  "honest  to  God"  farmer  was  in  any  way  involved 
with  the  $734,000.  in  excess  loans  of  the  bank,  but  that 
the  majority  of  the  loans  were  made  to  Townley  and 
his  tools? 

Was  he  afraid  that  he  would  be,asked  to  explain  how 
it  happened  that  he  was  claiming  that  the  farmers 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       173 

credit  ws  being  attacked  when  as  a  matter  of  fact  it 
'was  his  rotten  companies  and  his  miserable  manage- 
ment that  was  at  issue  ? 

Was  he  afraid  that  he  would  be  asked  to  explain 
the  A.  M.  Grosvernor  deal,  and  its  connection  with 
Box? 

Was  he  afraid  that  he  would  be  asked  to  explain 
about  the  Porter  Kimball  line? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  his  Scandinavian  American  Bank  kited  its  ac- 
counts with  the  Bank  of  Commerce  and  Savings  Bank 
of  Duluth,  Minnesota? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  the  two  deputy  bank  examiners 
both  appointed  under  Frazier  made  a  report  saying 
that  the  only  way  that  Mr.  Hall  and  I  could  safeguard 
the  stockholders  and  guaranty  fund  was  by  immediate- 
ly closing  the  doors  of  the  institution? 

Was  he  afraid  that  he  would  be  asked'1  fo  explain  how 
in  a  supplementary  report,  a  few  days  later,  these 
same  two  deputy  bank  examiners  said  that  the  bank 
was  'hopelessly  insolvent'? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Sherman  as  cashier  of  the  bank- 
wrote  to  him.  Town  ley,  who  is  not  an  official  of  the 
state  of  North  Dakota,  for  the  half  a  million  of  state 
money,  Which  he,  Townlcy,  had  promised  Hagan? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Sherman,  cashier  of  the  bank, 
asked  him,  Townley,  as  early  as  May  to  send  HALF  A 
MILLION  DOLLARS  OF  THE  TAXPAYERS  MONEY 
TO  SAVE  THE  BANK  FROM  EMBARRASSMENT 
AND  DISGRACE? 

Was,  he  afraid  that  he  would  .-be  asked  to  explain 
how  it  happened  that  state  money  had  time  and  time 
again  been  sent  them  to  help  'tide  them  over'? 


174  THE  NONPARTISAN  LEAGUE 

Ws  he  afraid  that  he  would  be  asked  to  explain 
iiow  it  happened  Halliday,  who  wrote  for  Waters  'tip- 
ping off"  the  Scandinavian  American  Bank,  was 
promoted  from  a  $125  job  as  clerk  to  a  $250  job  in  the 
Bank  of  North  Dakota.? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Mr.  Halldorson,  who  was 
appointed  receivver  by  the  banking  board,  at  our  re- 
quest put  up  a  $100,000  surety  bond  before  he  took 
over  the  bank  and  how  the  receiver  put  in  chage  by 
the  supreme  court  put  up  no  bonds  at  all  as  receiver? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  the  Scandinavian  American  Bank 
had  been  warned  time  and  time  again  TO  GET  ITS 
AFFAIRS  IN  SHAPE  OR  TAKE  THE  CONSEQUENC- 


Was  he  afraid  that  lie  would  be  asked  to  explain  how 
it  happened  that  the  Haggerty  notes  amounting  to  $47- 
000  had  been  ordered  out  of  the  bank  time  and  time 
sixain,  months  ago,  how  they  became  past  due  and  had 
ftever  been  removed  and  were  still  in  the  bank  when 
the  receiver  took  charge? 

Was  he  afraid  that  he  would  be  asked  to  explain 
)*ow  it  happened  that  it  was  necessary  to  sell  shares  of 
stock  in  the  protected  bank  at  $210  a  share  al- 
though the  bank  was  hopelessly  insolvent? 

Was  he  afraid  that  he  would  be  asked  to  explain 
foow  it  happened  that  the  notes  sent  to  the  bank  of 
Commerce  and  Savings  of  Duluth  indorsed  without  re- 
course to  the  amount  or  eighty  or  ninety  thousand  were 
5*ight  back  again  within  a  few  days  after  examination 
6f  the  bank? 

Was  he  afraid  that  he  would .  be  asked  to"  explain 
&ow  it  happened  that  over  $37,000  in  notes  which  were 
returned  Sept.  3  were  not  entered  on  the  books  at  all 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       175 

but  were  carried  as  a  'cash  item'  to  deceive  the  deputy 
bank  examiners? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  Hagan  and  Sherman,  the  presi- 
dent and  cashier  of  the  bank  were  arrested  on  the  com- 
plaint of  Deputy  Bank  Examiner  Halldorson  by  state 's 
Attorney  W.  0.  Green  of  Cass  County? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  when  some  of  our  neighbors 
from  Morton  County,  members  of  the  league,  went 
down  to  Fargo  to  ASK  FOR  DEMOCRACY  WITHIN 
THE  LEAGUE,  that  Jim  Manahan  of  St.  Paul  found 
it  necessary  to  talk  25  minutes  to  tell  them  funny  stor- 
ies and  what  traitors  Hall,  Kositzky  and  Langer  were? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  if  bad  loans  were  taken  from  the  Scandinavian 
American  Bank  and  shot  over  to  the  Bank  of  Nortli 
Dakota,  that  the  tax  payers  of  NORTH  DAKOTA 
MUST  ULTIMATELY  MADE  THEM  GOOD? 

Was  he  afraid  that  he  would  be  asked  to  explain 
how  it  happened  that  although  the  FARMERS  PAY 
ALL  THE  MONEY  THAT  TOWNLEY  HAS  ALL 
THE  CONTROL? 

Hastings  the  financial  secretary  of  Townley 
and  Brinton,  Townley 's  former  private  secretary,  testi- 
fied about  these  crooks  and  grafters,  and  the  MEN 
THEY  CALL  CROOKS  AND  GRAFTERS  ARE 
AFRAID  TO  GET  UNDER  OATH  IN  A  COURT 
OF  LAW. 

THEY  ARE  AFRAID  OF  THE  TRUTH.  THAT  IS 
W#Y  A.  Cr  TOWNLEY  IS  RUNNING  HIS  PRIVATE 
LAWYER,  WILLIAM  LEMKE,  WITH  WHOM  HE 
CONTROLS  THE  LEAGUE  FOR  ATTORNEY  GEN- 
ERAL OF  THE  STATE-RUNNING  HIM  TO  BLOCK 
THE  INEXORABLE  WHEELS  OF  JUSTICE. 


176  THE  NONPARTISAN  LEAGUE 

This  is  the  same  Lemke,  who  his  associate  and  Town- 
ley's  late  private  Secretary  Brinton,  says  is  president 
of  the  Courier  News. 

Manager  and  owner  of  the  Publishers  National  Ser- 
vice Bureau  which  controls  all  the  League  weekly 
papers  in  the  state.  " 

"  Executive  commit!  eeman  and  attorney  for  the  Non- 
partisan  League  in  14  states." 

"Owner  of  70  per  cent  of  the  stock  and  director  of 
the  Consumers  United  Stores  company.  '  ' 

"  Attorney  for  the  Bank  of  North  Dakota/' 

0  Lately  chairman  of  the  state  republican  com- 
mittee." 

"Manager  and  part  owner  of  the  Scandinavian  Am- 
erican Bank." 

"Attorney  for  the  Mill  and  Elevator  association." 

"The  Home  Building  association  And  the  Compensa- 
tion Bureau." 

"Promoter  of  a  large  land  enterprise  in  Mexico." 

"Attorney  for  A.  C.  Townley  in  the  Florida  planta- 
tion enterprise." 

"Former  law  partner  of  Supreme  Court  Judge  Rob- 
inson.  ?  * 

"Business  associate  and  school  mate  of  Governor 
Frazier.  '  ' 

"Brother-in-law  of  Board  of  Administration  Mem- 
ber Muir." 

"Organizer  and  part  owner  of  Grand  Forks  Ameri- 
can, Minnesota  Daily  Star." 

"Attorney  for  Townley  in  his  bankruptcy  proceed-. 


"General     attorney  and     supervisor     of  all     Non- 
partisaii  League  activities  in  14  states." 

This  is  the  same  Lemke  who  claims  that  HE  saved 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       177 

the  state  in  the  Standard  Oil  Company  case — when  the 
court  records  show  that  before  he  or  Seth  Richardson 
ever  appeared  in  the  case — that  every  step  had  been 
won  including  the  preliminary  injunction  before  three 
Federal  Judges  in  St.  Paul. 

This  is  the  same  Lemke  \vho  was  at  Bismarck  when 
the  Standard  Oil  Company  sent  their  smooth,  suave 
lawyers  up  there  and  GOT  THE  LAW  CHANGED  SO 
SATISFACTORILY  THAT  THEY  DROPPED  THEIR 
LAW  SUIT. 

This  is  the  same  Lemke  who  in  the  secret  recesses 
of  Ed.  Patterson's  hotel  at  Bismarck  makes  "deals" 
with  the  Alex  McKenzie  crowd  while  gayly  eating 
their  food  and  drinking  their  drinks!  Oh  how  Me- 
Kenzie  must  hate  him 

This  is  the  same  Lemke  who  knowing  that  as  At- 
torney General  I  had  gotten  Frazier,  Packard  and 
]  irons  on  to  meet  the  best  engineers  on  public  utilities 
in  the  United  States  (Hagenah  and  Eriekson  of  Chicago 
the  former  engineers  for  Senator  Robert  LaFollette) 
so  that  the  state  of  North  Dakota  could  value  the  rail- 
roads 011  the  same  basis  for  rate  making  and  taxing 
]mrp-..'st'saml  the  railroad  interests  got  the  legislature 
to  take  from  my  office  $69,000  so  that  without  money  . 
it  would  ho  impossible  to  hire  experts  to  investigate 
and  make  a  proper  showing  on  frieght  rates— $30,000 
a  da.y  lost  to  thef  armors"  says  Lemke— now  "You 
must  «'lect  me  to  beat  the  railroads." 

This  is  the  same  Lenike  whose  friend  Jim  Manahan 
tried  to  "stick"  the  people  of  this  state  on  an  electrific- 
atior  line  deal  "so.  that  they  wepld  pay  interest  on  a 
million  dollars  more  hail  the  property  was  worth.— a 
deal  that  failed  because  of  the  filed  reports  of 
Hagenah  and  Eriekson  made  under  contract  with  me 
ore  Lemke  took  the  $69,000  away! 


178  THE  NONPARTISAN  LEAGUE 

And  Frazier  knows  this  and  Townley  knows  this, 
much  RESPONSIBLE  AS  ANY  OTHER  PERSON  for 
and  Lemke  knows  this— and  LEMKE  WHO  is  as 
THE  RATES  BEING  BOOSTED  SEVERAL  MIL- 
LION  DOLLARS  A  YEAR  BY  HIS  RAILROAD  COM- 
MISSION-IS RUNNING  FOR  ATTORNEY  GENER- 
AL! 

ALEX  MCKENZIE  DOESN'T  C.OME  TO  BIS- 
MARCK FOR  NOTHING! 

I  am  talking  "straight  talk"  arrest  me!  I  defy 
them  to! 

And  MeKenzie's  water  rates  in  Bismarck!  The  peo- 
ple petition  Lemke 's  Railroad  Commission  for  lower 
rates  from  Alex  McKenzie's  water  company  and  Mc- 
Kenzie  hires  who  for  his  lawyers? 

The  Nonpartisan  Senator  from  McLean  County, 
Robert  Frazier,  Lemke 's  chum. 

And  Alex  McKenzie  get  an  increase  of  60  per  cent 
in  the  rate — and  the  people  either  have  to  appeal  or 
pay  it! 

And  then  Lemke  says  "I  will  investigate  the  Rail- 
road Commission." 

McKENZIE  AND  LEMKE~LEMKE  AND  Mc- 
KENZIE—  it  doesn't  matter  to  the  common  people 
whose  name  you  write  first. 

And  Townley  riding  in  the  Pullman  with  Alex  Mc- 
Kenzie and  registering  with  McKenzie  at  the  McKen- 
zie Hotel,  as  he  did  a  fow  weeks  ago,  wonders  how 
many  organizers  are  oift  *' getting  the  money"  and  now 
long  it  will  be  before  the  inevitable  awakening  will 
comej 

AND  WHEN  IT  COMES  LEMKE  MUST  BE  AT- 
TORNEY  GENERA!/- CROOKS  NEED  PROTECT- 


IT6  BIRTH,  ACTIVITIES  AND  LEADERS       179 

1H&Y  WANT  NO  ONE  BUT  LEMKE  TO  HlVE 
POWER  TO  PLACE  THEM  ON  THE  WITNESS 
SMUTCH 


J80  THE  NONPARTISAN  LEAGUE 

CHAPTER  XII 

SMASHING  TOWNLEY'S  GREAT  BANKING 
SCHEME 

Some  months  ago  the  great  insolent,  people  be 
damned"  socialist  political  machine  was  at  its  height. 
The  Socialist  leaders  had  the  destiny  of  the  State  of 
North  Dakota  in  the  palms  of  their  hands.  They  had 
such  control  of  the  legislature  that  they  passed  seven- 
teen million  dollars  worth  of  bond  issues  AND  TO 
FIFTEEN  MILLION  IN  DEFIANCE  OF  THEIR 
WRITTEN  PROMISES  ATTACHED  EMERGENCY 
CLAUSES  which  meant  that  they  controlled  two 
thirds  of  the  House  of  Representatives  and  two  thirds 
of  the  Senate. 

These  men  could  pass  a  measure  with  an  emergency 
clause  attached  and  make  new  laws  almost  over  night. 
So  powerful  was  this  organization  that  they  had  laws 
pased  which  gives  TO  THEIR  TOOLS,  THE  GOVER- 
NOR AND  JOHN  HAGEN,  COMMISSIONER  OF 
AGRICULTURE  AND  LABOR  THE  POWER  TO 
CREATE  AS  MANY  JOBS  AS  THEY  WISH,  THOU- 
SANDS OF  THEM  IF  THEY  SO  DECIDE  AND  THEY 
CAN  FIX  THE  COMPENSATION  THEY  CHOSE 
FOR  THOSE  WHOM  THEY  APPOINT  TO  THESE 
POSITIONS.  Honarary  positions  were  placed  with- 
in the  gift  of  the  Governor — for  a  litttle  position  of 
honor  so  often  tickles  the  vanity  of  the  recipient  and 
makes  him  a  "GOOD  FOLLOWER." 

The  newspapers  compulsorily  financed  by  the  Boun- 
ties for  a  period  of  eighteen  months  were  in  their  <ion- 
trol.  If  a  man  dared  to  utter  a  word  of  criticism 
against  the  socialist  leaders  they  could  WIPE  HIM 
OUT  AS  THEY  WOULD  A  FLY.  The  Consumers 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       181 

but  of  three  of  Townleys  employees,  not  one  of  them 
a  farmer,  according  to  HIS  FINANCIAL  SECRETARY 
gathered  in  $1,100,000  of  money  and  notes—but  BEST 
OF  ALL  the  stores  offered  a  place  for  the  distribution 
of  their  propaganda  a  PLACE  WHERE  THE  MANAG- 
ERS COULD  INSIDIOUSLY  STICK  POISONOUS 
DAGGERS  IN  THE  BACKS  OF  HONEST  MEN  WHO 
REFUSED  TO  BOW  DOWN  TO  SOCIALISM. 

The  Bank  of  North  Dakota  into  which  UNDER 
PENALTY  OF  GOING  TO  JAIL  THE  TREASURER 
OF  THE  STATE,  OF  EVERY  COUNTY  OF  EVERY 
SCHOOL  DISTRICT,  CITY,  VILLAGE  AND  TOWN- 
SHIP  HAD  TO  PLACE  EVERY  CENT  of  the  tax- 
payers money  was  in  control  of  the  Socialists,  a  con- 
trol so  thorough  that,  with  impunity,  they  could  if 
they  wished  remove  the  manager  over  night,  a  control 
SO  SECRET  that  no  one  "but  their  tool  0.  E.  Lofthus, 
The  Socialist  Bank  Examiner,  could  examine  into  what 
the  men  running  that  bank — as  a  member  of  the  Indust- 
rial Commission  J  was  SUPPOSED  TO  BE  ONE  OF 
THEM — vvere  doing  witli  the  millions  of  dollars. 

Truly  the  New  Day  had  dawned  brightly  for  the 
Socialists— while  the  farmers  weary  from  labor  were 
trusting  their  SELF-APPOINTED  leaders.  BUT 
AUTOCRATIC  POWER  IS  INSATIABLE!  The  so- 
cialist leaders  were  yet  hungrily  casting  jealous  eyes 
on  what  little  remnant  of  strength  was  left  to  the 
opposition.  The  Bank  of  North  Dakota  cdntaiued 
chiefly  the  public  money  the  individual  deposits 
were  being  deposited  by  the  people  in  banks  privately 
owned  and  the  leaders  implacable  in  their  hate  of  any 
thriving  business  which  they  did  not  control  themselves 
EVOLVED  A  GREAT  ^SCHEME  TO  PUT  THOSE 
BANKS  OUT  OF  BUSINESS. 

If  they  could  eliminate  these  institutions  which  Town- 
ley  has  always  act-used  of  being  the  back  bone  o?  the 


>82  THE  NONPART1SAN  LEAGUE 

strength  of  the  opposition  to  him,  THEY  WOULD  BE 
mjPREME— THEY  WOULD  HAVE  THE  FARMERS 
JN  THEIR  GRASP  FOR  YEARS  TO  COME  I 

Townley  's  scheme  was  the  organization  of  a  chain  of 
two  hundred  banks  in  North  Dakota.  The  scheme  was 
first  suggested  to  him  by  his  former  financial  secre- 
tary, J.  J.  Hastings,  a  young  man  with  almost  uncanny 
financial  abiblity.  It  was  suggested  to  Townley  at  the 
ti*e  Gardner  Hotel  shortly  after  the  Valley  City  Bank 
deal  wras  exposed,  and  the  socialist  leaders  acted  on 
the  suggestion,  with  marvelous  rapidity. 
.  First  of  all  they  imported  a  radical  from  San 
l?raneisco ,  by  the  name  of  Cutting.  Next  Townley 
aiid  Cutting  proceeded  to  call  upon  various  of  their 
senators  and  representatives  and  with  the  a*isisfa&ce 
6?  these  men  small  meetings  of  farmers  wore  called 
some  of  these  meetings  were  addressed  by  Townley 
toiaiself— other  times  he  was  absent — when  he  was  pre- 
seat  he  told  the  farmers  among  other  things  that  "Big 
Business"  was  in  conspiracy  to  see  to  it  that  the 
farmer  would  be  short  of  money,  that  "Big  Business " 
wcmld  refuse  to  make  them  new  loans,  and  would  call 
m  the  loans  that  they  had  extended  to  the  farmers  when 
t&ey  became  due  and  that  the  only  solution  of  the  diffi- 
culty for  the  farmers  was  for  THE  FARMERS  TO 
ORGANIZE  BANKS. 

With  the  Bank  of  North  Dakota  in  full  operation  and 
the  Scandinavian  American  Bank  of  Fargo  as  a 
central  bank,  Townley  felt  that  he  could  put  the 
sc&eme  over.  He  had  meetings  and  either  organized 
or  partially  organized  banks  at  Carrington,  New  Rock- 
Sheyeniie,  Bowdon,  Woodworth.  Northwood, 
at  other  places.  Eleven  of  these  banks 
in-  tJie  process  o£  organization,  three  of  them  act- 
ivity organized  befb>re^Ira^Att6rney  General  became 


ITS  BIRTH,  ACTIVITIES  AND  LEAEDBS       183. 

aware  of  his  latest  attempt  to  control  the  financial 
affairs  of  all  of  the  farmers  of  North  Dakota.  With 
only  53  counties  in  the  state,  he  would  have  approxi- 
mately four  banks  to  a  county,  with  the  Bank  of  North 
Dakota  with  its  millions  of  dollars  of  public  money  so 
under  his  control  that  he  could  deposit  the  public  funds 
in  the  institutions  he  organized. 

TOWNLEY,  OF  COURSE,  NOT  THE  FARMERS, 
,WAS  GOING  TO  HAVE  CONTROL  OF  THESE 
BANKS.  In  detail  the  scheme  was  as  follows:  Some 
time  before,  Townley  had  organized  a  corporation 
known  as  the  League  Exchange. 

The  object  of  this  corporation  was  that  it  should  be 
a  sort  of  a  holding  company  and  more  particularly  it 
was  organized  to  finance  the  socialists.  This  organi- 
zation had  purchased  57  shares  of  stock  in  the 
Scandinavian  American  Bank  of  Fargo  and  in  violation 
of  the  Banking  laws  of  the  state  placed  said  stock  as 
security  iii  the  Scandinavian  American  Bank  from 
which  it  borrowed  money  to  buy  it. 

The  League  Exchange  Townley  controls  through  F. 
B.  Wood,  who  is  its  head  man. 

Townley's  plan  and  he  carried  it  out  was  to  hare 
the  farmers  put  up  either  cash  or  notes  for  49  per  cent 
of  the  stock  in  a  bank. 

The.  League  Exchange  would  put  in  a  note  for  the 
51  per  cent. 

Say  this  Bank  was  at  Bowdon.  Townley  would  take 
these  notes  of  the  farmers  to  the  bank,  say  at  Carrin«r- 
ton.  And  it  was  Townley's  idea  that  the  Bank  of 
North  Dakota  would  deposit  enough  money  in  the  Scan- 
dinavian American  Bank  of  Fargo  could  carry  the  Car- 
el  inavian  American  Bnk  of  Frgo  could  carry  the  Car- 
rington  Bank,  and  thus  get  it  to  give  him  the  money 
to  put  into  the  bank  at  Bowdon;  the  next  bank,  say 
the  one  at  Northwood  would  repeat  the  process 


184  THE  NONPAKTISAN  LEAGUE 

Townley  would  this  time  take  the  notes  to  Bowdon,  in- 
stead of  Carrington. 

With  the  State  Bank  of  North  Dakota  doing  the  fin- 
ancing through  the  Scandinavian  American  Bank  of 
Fargo,  it  was  Townley 's  plan  that  this  process  would 
be  repeated  and  repeated  the  chain  of  200  banks 
was  going. 

The  bank  in  each  place  would  of  course  be  known  as 
the  farmers  bank.  49  per  cent  of  the  stock  being  held 
by  farmers  in  that  locality.  51  per  cent  would  be  held 
by  the  League  Exchange  controlled  by  Townley 
through  F.  B.  Wood.  And  so  WITHOUT  PUTTING 
A  SINGLE  DOLLAR  INTO  ANY  ONE  OF  THE  200 
BANKS  IT  WAS  TOWNLEY 'S  SCHEME  THAT 
THROUGH  THE  USE  OF  THE  PUBLIC  MONEY 
THE!  BANK  of  North  Dakota  and  the  institution  called 
the  Scandinavian  American  Bank  of  Fargo  he  would 
be  able  to  name  the  officers  in  all  of  these  200  banks 
and  be  able  to  dictate  to  whom  loans  should  be  made 
anci  to  whom  they  should  not  be  made.  MORE  PAR- 
TICULARLY TO  WHOM  THEY  SHOULD  NOT  BE 
MADE. 

At  soon  as  I  became  familiar  with  what  he  was  try- 
ing to  "put  over"  I  at  the  next  meet  in  <>  of  the  State 
Banking  Board  brought  the  matter  to  he  attention  of 
he  Board,  with  the  result  that  after  an  exended  dis- 
•cussion— in  spite  of  Governor  Frazier's  protest~Sec- 
r clary  of  State  Hall,  and  myself  voted  to  warn  -the 
farmers  of  North  Dakota  against  this  banking  scheme 
and  j*  resolution  was  passed  WITH  GOVERNOR 
FRAZIER  VOTING  "NO",  asking  that  I  as  attorney 
general  WARN  THE  FARMERS  AGAINST  THIS 
FORM  OF  BANK  ORGANIZATION, 

And  thereafter  on  October  1.  1919,  I  sent  out  the  fol- 
lowing -warning : 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       185 

STATE   OF   NORTH    DAKOTA 

Office  of  Attorney  General 

BISMARCK 

WUIiam    Langer,   Attorney   General. 

October  1,  191* 

Dear  Sir:— 

At  the  weekly  meeting  of  the  State  Banking  Board,  I  as 
Attorney  General,  was  directed  by  the  State  Banking  Board 
to  warn  the  farmers  and  others  against  buying  stock  in  banks 
which  they  do  not  control  after  organization. 

The  Banking  Board  has  information  that  the  organization 
of  two  hundred  banks  was  contemplated,  and  that  the  con- 
trolling interest  in  all  of  these  banks  would  not  be  in  the  hands 
of  the  farmers,  but  i  one  corporation,  and  farmers  would  have 
no  voice  in  the  selection  of  managers  of  officers  of  the  bank. 

The  resolution  adopted  in  full,  is  as  follows: 

"Moved  by  Mr.  Langer,  that  whereas  information  has  come 
to  this  State  Banking  Board  that  A.  C.  Townley  and  a  man 
from  San  Franscisco  by  the  name  of  Cutting,  are  out  among 
the  farmers  of  this  State,  organizing  banks,  wnicn  are  30  or- 
ganized that  a  corporation  controlled  by  A.  C.  Townley  owns 
51%  of  the  stock  in  each  bank  with  the  result  that  the  far- 
mers putting  their  money  in,  will  have  nothing  to  say  about 
the  acual  operaion  of  the  bank,  who  will  be  the  ofifcers,  what 
kind  of  notes  it  should  take,  etc.,  and 

"WHEREAS,  the  Banking  Board  considers  the  double  lia- 
bility of  the  League  Exchange  valueless  and, 

"WHEREAS,  banks  organized  as  outlined  above  are  inimical 
to  the  best  interests  of  the  State  Guarantee  Fund. 

"BE  IT  RESOLVED,  that  a  warning  be  sent  out  by  the 
Attorney  General  of  this  State,  warning  the  farmers  of  this 
form  of  bank  organization,  and  further  that  the  Board,  urge 
the  farmers  that  wherever  they  feel  that  a  bank  is  needed, 
that  they  subscribe  to  all  the  stock  themselves,  that  when 
they  put  their  money  into  a  bank  that  they  have  something  to- 
say  about  who  is  running  it,  the  kind  of  notes  to  be  accepted 
that  they  elect  their  own  Board  of  Directors  and  not  be  sub- 
ject to  dictation  of  any  person  or  corporation,  and  further 
that  the  Board  assures  the  farmers  that  they  will  do  every- 
thing they  possibly  can  to  assist  in  the  organization  of  banks 
which  are  actually  controlled  by  the  farmers  themselves." 

For  your  information  I  desire  to  state  that  this  resolution 
was  not  adopted  unanimously:  Secretary  of  State  Thomas 
Hall  and  myself  voting  "yes"  and  Governor  Frazier  voting 
"no". 

This  resolution  in  no  wise  prevents  you  from  buying  stock 
in  any  bank  or  banks  you  wish.  It  simply  tells  you  that  your 
State  Banking  Board  considers  it  unsafe  and  unwise  to  your- 
self, and  dangerous  to  the  State  banking  system,  if  you  do. 
Thereason  for  thi3  is  that  the  corporation  has  not  sufficient 
property  to  meet  the  double  liability  fixed  by  law  in  case  of 
loss,  whereas  your  'property  would  be  liable  for  100  per  cent 


186  THE  NONP  ARTISAN  LEAGUE 

of  the  value  of  the  stock  you  purchase  besides  the  money  you 
pay  for  the  stock  itself. 

You  understand  that  personally  It  is  entirely  immaterial  to 
to  me  whether  you  buy  stock  or  not.  I  take  it  you  know  your 
business  better  than  T  do.  This  letter  is  simply  written  you 
officially  in  line  of  my  duty. 

Very  truly  yours, 

William  linger. 
Attorney   General. 

One  of  the  arguments  for  permitting  Townley  to  put 
the  scheme  over  was  that  the  State  Bank  Guaranty 
Act  would  protect  the  depositors.  No  statements 
could  be  more  fallacious  THAN  THAT  THE  STATE 
GUARANTEES  BANK  DEPOSITS  PLACED  IN  AN 
ORDINARY  STATE  BANK. 

IT  DOES  NOT. 

All  the  state  does  is  to  levy  an  assessment  of  1-20  of 
1  per  cent  each  month  on  the  daily  deposits  in  each, 
state  bank.  This  assessment  compels  each  state  bank 
to  set  aside  in  each  local  institution  what  is  known 
"as  a  Bank  Guaranty  Fund,  and  when  a  bank  becomes 
insolvent  the  state  guaranty  board  levies  an  assessment 
against  each  bank  against  this  fund  made  up  of  the 
levy  of  1-20  of  1  percent.  BUT  THIS  FUND  IS 
LIMITED  BY  LAW  TOLEVIES  1-20  OF  1  PER  CENT 
UNTIL  THE  FUND  REACHES  ANE  PERCENT  OF, 
THE  AVERAGE  DAILY  DEPOSITS. 

The  law  itself  is  as  follows,  being  part  of  Section  7 
Senate  Bill  217  of  Session  Laws  for  1917. 

"  One-Twentieth  of  one  per  cent  of  the  average  daily 
deposits  as  shown  by  the  first  statement  of  such  aver- 
age daily  deposits  required  to  be  made  and  filed  by  the 
provisions  of  this  section. 

"For  each  and  every  year  thereafter  one-twenthieth 
of  one  per  cent  of  the  average  daily  deposits  as  shown 
by  the  statement  required  to  be  made  and  filed  under 
the  provision  of  this  act  in  each  year,  until  the  total 
amount  of  money  in  the  Guaranty  Fund  reaches  ont 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       187 

percent  of  the  average  daily  deposits;  provided,  how- 
ever, that  said  depositors  Guaranty  Fund  Commission 
should  have  power  to  make  and  levy  additional  assess- 
ments of  one-twentieth  of  one  percent,  but  not  to  ex- 
ceed four  such  additional  assessments  shall  be  made 
in  any  one  year. ' ' 

When  that  small  fund  is  wiped  out,  say  by  three  or 
four  banks  becoming  insolvent,  then  the  depositors 
would  have  to  wait  until  the  fund  grew  again,  and  you 
can  readily  see  that  it  40  or  50  banks  become  insolvent 
that  it  would  be  years  and  years  before  the  fund  would 
be  large  enough  to  pay  up  the  depositors. 

And  any  one  could  easily  understand  that  the  great 
danger  of  Townley 's  scheme  was  that  if  one  bank  of 
his  chain  went  broke  itWOULD  HAVE  TO  NECES- 
SARILY CALL  FOR  THE  MONEY  FROM  THE  BANK 
WHICH  HAD  ITS  PAPER  PLEDGED  TO  IT,  AND 
THAT  BANK  IN  TURN  WOULD  HAVE  TO  CALL  ON 
THE  NEXT  BANK,  WITH  THE  RESULT  THAT  THE 
WHOLE  CHAIN  OF  BANKS  WOULD  CRUMBLE. 

The  warnings  sent  out  did  the  business. 

Townley 's  scheme  faded  over  night.  Cutting  left.  The 
ghastly  Scandinavian  America n  Bank  exposure  came 
shortly.  The  socialists  fled  for  shelter.  Townley 
did  not  get  the  Farmers  Money. 

I  as  Attorney  General  later  convicted  President 
Hagan  of  the  Scandinavian  American  Bank.  The 
Judge  appointed  by  Governor  Frazier  later  set  aside 
the  conviction  although  he  had  presided  through  the 
entire  course  of  the  trial.  Hagan  the  crook  whom 
Townley 's  lawyers  saved  was  also  by  appointment  of 
Frazier,  Chairman  of  the  State  Guarantee  Board  and 
on  the  24th  day  of  October,  in  the  face  of  their  lying 
newspapers  attacks  I  issued  my  MOW  famous  challenge 
to  Townley  to  DEBATE  ME  IN  THE  AUDITORIUM 


188  THE  NONPARTISAN  LEAGUE 

AT  FARGO,  A  CHALLENGE  WHICH  TOWNLEY, 
HAS  REFUSED  TO  ACCEPT,  ALTHOUGH  IT  HAS 
BEEN  HURLED  AT  HTM  FROM  PRACTICALLY 
EVERY  COUNTY  IN  NORTH  DAKOTA.  A  CHAL- 
LENGE WHICH  WILL  STINGINGLY  RING  IN  THE 
EARS  OF  THE  HONEST  FOLKS  OF  THE  STATE 
WHEN  THE  SCALES  OF  MISUNDERSTANDING 
AND  HATE  AND  PREJUDICE  FOSTERED  BY  THE 
SOCIALIST  NEWSPAPERS  WILL  HAVE  FALLEN 
FROM  THEIR  EYES. 

THE   CHALLENGE 

TO  A.  C.  TOWNLEY,  I  hereby  challenge  you  to  meot 
me  in  public  debate  at  Fargo,  to  debate  the  following: 

1.  The  Valley  City  Bank  deal. 

2.  The  looting  of  the  Scandinavian  American  Bank. 

3.  The  Minnie  J.  Nielson  controversy. 

4.  Why  J.  R.  Waters  was  appointed  bank  examiner 
and  later  manager  of  the  Bank  of  North  Dakota. 

5.  That  the  organization  of  the  Nonpartisan  league 
it  not  democratic,  but  that  you  are  as  autocratic  ab- 
solutely controlling  the  same. 

6.  The  committee  on  arrangments  is  to  be  selected 
in  the  following  manner :    I  to  select  one,  A.  C.  Town- 
ley  to  select  one,  and  these  two  to  select  the  third. 

I  promise  to  treat  you  like  a  gentleman  and  you  can 
treat  me  any  way  you  want. 

This  challenge  is  to  you,  and  you  alone,  You  will 
not  be  permitted  to  substitute  for  yourself,  the  night 
of  the  debate,  either  Victor  Berger,  Walter  Thomas 
Mills,  Kate  Richards  O'Hare,  Lynn  J.  Frazier,  Emma 
Goldman,  Bill  Hay  wood,  or  anyone  else. 
Yours  truly, 

William  Langer. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       189 


CHAPTER   XIII 

FREE  LOVE  AND  THE  SCHOOLS  OF  NORTH 
DAKOTA 

The  Farmers  of  North  Dakota  are  neither  FREE 
LOVERS  NOR  ATHIESTS'  SOME  OP  THE  MEN 
EITHER  IN  CONTROL,  OR  APPOINTEES,  OF  THE 
SO  CALLED  FARMERS'  ORGANIZATION  ARE! 
And  when  the  truth  is  told  about  these  men  they  lie 
and  tell  the  farmers  that  "THEY  SAY  YOU  ARE 
FREE  LOVERS  AND  ATHEISTS. 

At  the  last  special  session  of  the  legislature,  Repre- 
sentative Burtness  of  Grand  Forks,  who  has  since  beat- 
en the  Nonpartisan  congressman,  John  Baer,  made  the 
statement  on  the  floor  of  the  House,  that  he  had  made 
an  investigation  of  the  state  library  and  he  had  found 
not  only  a  bunch  of  Socialist  books  but  also  several 
written  by  Ellen  Keyes,  and  other  authors  of  that 
type  and  that  these  books  on  free  love  and  kindred 
topics  were  intended  to  be  sent  out  to  the  school  chil- 
dren of  North  Dakota  in  what  is  known  as  the  travel- 
ing library. 

Immediately  there  was  a  demand  for  an  investiga- 
tion. The  Socialist  leaders  controlled  the  lower  House 
and  of  course  named  the  investigation  committee. 

The  committee  found  that  a  lady  from  New  York 
City  by  the  name  of  Miss  Anna  Peterson  was  in 
r-harge.  She  had  been  engaged  by  Geo.  A.  Totten,' 
ehairman  of  the  Board  of  Administration,  through 
correspondence  with  Professor  Chas.  A.  Beard  of  New 
York  City.  The  Board  of  Administration  had  also  em- 
ployed one  C.  E.  Stangeland,  a  Socialist  of  more  or 
less  notorious  reputation,  not  only  in  the  United  States 


190  THE  NONPARTISAN  LEAGUE 

but  in  other  countries.  Under  oath  Stangeland  teaifi- 
ed  that  the  Professor  Beard  mentioned  was  the  OH* 
who  went  his  bail  when  he  was  in  jail  in  New  York 
City  on  charges  of  disloyalty. 

The  charges  made  by  Mr.  Burtness  were  investigat- 
ed. The»records  showed  that  the  books  had  been  pur- 
chased from  Chas.  E.  Kerr,  341  East  Ohio  St.,  Cki- 
cago,  111.,  which  is  probably  the  largest  Socialist  book 
distributing  agency  in  the  country.  Just  to  get  an  idea 
of  the  kind  of  stuff  these  people  were  attempting  to 
put  into  the  public  libraries  for  the  children  to  read, 
look  at  this  bill,  which  was  refused  by  the  Auditog 
Board. 

TO  THE  STATE  BOARD  OF  REGENTS. 

November  9,  1919. 
State  of  North  Dakota,  Dr. 
Through  the  Public  Library  Commission. 
To  Charles  H.  Kerr  Company, 

341  E.  Ohio  St., 
Dept.  Voucher  No. —  Address   Chicago,   111. 

1  Anarchism    and    Socialism    60 

1  Ancient    Lowly,    Vol    II    2.00 

1  Each  Capital,  Vols.  II  and  III,  $2.50 5.00 

5  Class    Struggles    in    America,    .60 3.00 

1  Economic  Causes  of  War 1.00- 

1  Economic    Determinism    1.00 

1  Labriola's    Essays    1.25 

1  Kautsky's    Ethics    60 

1  Evolution   of   Property 601 

1  History  of  Supreme  Court  2.00 

1  Introduction    to    Sociology  v. 1.25 

1  Labor  Movement  in  Japan  1.00 

1  Marx    vs.    Tolstoy    60 

1  New-;    From    Nowhere 1.25 

1  Origin    of    the    Family    .60 

2  Positive    School    of    Criminology,    .60 1.20 

1  Socialism    &    Mode-rn    Science 1.25 

1  Socialism    vs.    The    State    1.00 

1  Stories    of   the    Great    Railroads 1.25 

1  Story    of    Wendel    Phillips 1.60 

1  Universal    Kinship    1.25 

2  Anarchism    and    Socialism,    .60 1.20 

2  Labor   Movement    in    Japan,    1.00 2.00 

5  Positive   School    of   Criminology,    .60 3.0fl 

2  Puritanism,    60 1.20 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       191 

1  Science    and    Revolution    60 

10  Class    Struggles    in    America,    .60 6.00 

42.80 

Less  33  1-3  per  cent 14.27     28.63 

1  Political    Parties    : 2.00' 

Less  10  per  cent 20      1.80 

5  The    Visioning,    $1.35 6.75 

Less  33  1-3  per  cent... 2.25      4.50- 


34.83 

Anyone  who  has  read  the  History  of  the 
Supreme  Court,  by  Meyers,  and  believes  the  book, 
would  become  AN  ANARCHIST,  as  far  as  our  courts 
are  concerned. 

Some  of  the  books  which  Mr.  Burtness  discovered 
exhibited  in  a  traveling  library  case  in  the  Library 
Commission  are  listed  below: 
Socialist  and  Modern  Science,  Ferri. 
Anarchism  and  Socialism,  Plesharoff. 
Positive  School  of  Criminology,  Ferri. 
Oass  Struggles  in  America,  Simmons. 
The  Evolution  of  Property,  LaFarges. 
Co-Operation,  the  Home  of  the  Consumer,  Harris. 
Not  Guilty.  Blatchford. 
Political  Parties,  Nickels. 
Stories  of  the  Great  Railroads,  Russell. 
American  Government  and  Politics,  Beard. 
Bolshevism,  Spargo. 

The  Bolsheviki  and  World  Peace,  Trotsky. 
Russia  in  1913,  Ransom. 
History  of  the  Supreme  Court,  Myers 
Our  Judicial  Oligarchy,  Rice. 
The  Profits  of  Religion,  Sinclair. 
Socialism  vs.  the  State,  Venderbachen. 
Love  and  Ethics,  Ellen  Keyes. 
Essays  mi  Materialistic  Conception  in  History, 

LaBriola 
\.-\v  Schools  for  Old,  Dewey. 


192  TH  ENONPARTISAN  LEAGUE 

The  Old  Freedom,  Nelson. 
Puritianism,  Miller. 

These  were  all  new  books  and  had  just  been  un- 
packed. These  men  were  of  course  CAUGHT  WITH 
THE  GOODS  and  someone  had  to  be  the  goat.  DID 
ANY  MEMBER  OF  THE  ADMINISTRATION,  who 
was  appointed  by  Governor  Frazier  RESIGN?  Did 
George  Totten,  Chairman  of  the  Board  resign?  George 
Totten  who  was  also  appointed  by  the  Governor  and 
who  in  Bowman  County,  at  the  time  of  his  appoint- 
ment, was  held  in  contempt  by  many  people  for  his  ad  • 
vocacy  of  radical  ideas.  HE  DID  NOT.  The  best  they 
could  do  was  to  make  C.  E.  Stangeland  the  goat, 
with  the  result  that  Stangeland  resigned,  and  on  the 
eve  of  his  departure  issued  a  bitter  statement. 

About  the  time  that  the  Board  of  Administration 
took  Stangeland  into  their  employ,  there  had  also 
come  into  North  Dakota  one  Madame  Signe  Lund,  a 
person  actively  interested  in  getting  Kate  Richards 
O'Hare  pardoned.  Signe  I^und  was  given  a  job  in  the 
Normal  School  at  Mayville.  As  soon  as  Stangeland  left, 
Madame  Signe  Lund,  who  circulated  the  petition  at 
Mayville  for  Kate  Richards  0 'Hare's  release,  also  re- 
signed, and  the  last  we  heard  of  her  she  was  in  Gary, 
Indiana. 

The  next  step  was  to  make  the  honest  farmers  who 
were  not  Socialists  believe  that  an  attack  was  made 
upon  them.  In  fifty-three  newspapers  of  the  State,  they 
spread  propaganda  saying  that  the  farmers  were  be- 
ing called  "free  lovers"  and  "atkiests."  As  a  further 
defense,  they  claimed  that  books  of  this  kind  were 
in  the  library  years  and  years  before,  but  they  didn't 
tell  the  people  of  the  State  that  the  few  books  on  in- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       193 

sanity  and  such  matters  were  kept  in  closed  shelves  — 
that  they  were  not  sent  out  in  the  traveling  libraries  of 
the  S,tate  for  the  school  children  to  read. 

These  books  on  Free  Love  and  Socialism  were  bad 
enough,  but  were  just  in  keeping  with  the  actions  tak- 
en by  the  men  in  control. 

Mr.  Burtness  quoted  from  some  of  the  books  which 
this  outfit  was  spending  the  public  money  for — here  is 
a  quotation  from  page  22  of  Upton  Sinclair's  '  The 
Profits  of  Belgium" 

"So  builds  itself  up,  in  a  thousand  complex  and  complicat- 
ed forms,  the  Priestly  JLie.  There  are  a  score  of  great  r< 
ions   in   the   world,   each   with   scores   or  hundreds   of   sc 
each  with  its  prie-stly  orders,  its  complicated  creed  and  rit- 
ual, its  heavens  and  hells.  Each  has  its  thousands  or  millions 
or  hundreds  of  millions  of  'True  Believers;'  each  damns  all 
the   others,   with   more    or    less    heartiness — and    each    is      a 
mighty  fortress  of  Graft.'' 

"There  will  be  few  reader-;  of  this  book  who  hr^ve  rot  oeen 
brought  up  under  the  spell  of  some  of  the-  systems  of  Super- 
naturalism;  who  have  not  been  taught  io  speak  with  reav 
of  some  particular  priestly  order,  to  thrill  with  awe  at  some 
particular  sacred  rite,  to  se«?k  respite  from  .earthly  wee  •  ii: 
*oine  particular  ceremonial  spell.  These  things  are  woven 
into  our  very  fibre  in  childhood;  they  are  sanctified  by  mem- 
ories of  joys  and  griefts,  they  are  confused  with  spiritual 
struggle;  they  become  part  of  a'l  that  is  most  vital  in  our 
lives.  The  reader  who  wishes  to  emancipate  himself  from 
their  thrall  will  do  well  to  begin  with  .a  study  of  the  belief*- 
and  practices  of  other  sects  than  his  own — a  Held  where  he- 
is  free  to  observe  ar.rt  examine  without  fear  of  sacri':ege ." 

Mr.  Burtness  rontinning  said: 

"On  page-  27  and  2<s  is  found  some-thing  so  sacrilegious 
and  so  terrible  that  I  wouldn't  read  it  in  this  House  or  at 
any  other  place,  I  will  say  particularly  to  those,  of  you  who 
are  Catholics  do  not  fail  to  read  pages  27  and  28  under  the 
heading  'Salve  Regina."  On  page  73  we  find  this  gem:  (Mr. 
Burtness  reads:) 

"And  of  course,  in  buying  the  English  Government,  these 
new  princes  have  bought  the  English  Church.  Skeptics  and 
men  of  the  world  as  they  yr»'.  they  know  that  they  must  have 
a  Religion.  They  have  read  the  story  of  the  French  Revolu- 
tion, and  the  shadow  of  the  guillotine  is  always  over  their 
thoughts;  they  see  the  giant  of  labor,  restless  in  his  tor- 
ment, groping  as  in  a  nightmare  for  the  throat  or  nis  ene- 
my. Who  can  blind  'be,  eyes  <>»'  this  giant,  who  can 


194  TJIK   NONPARTISAN  LEAGl'K 

him  to  his  couch  of  slumber?  There  is  but  one  agent  with- 
out rival — the  Keeper  of  the  Holy  Secrets,  the  deputy  of  the 
Almighty  Awfulness,  the  Giver  and  Witholder  of  Etenu 
Life.  Tremble,  slave!  Pall  down  and  bow  your  forehead 
the  dust!  I  can  see. in  my  memory  the  sight  that  thrilled  m; 
childhood— my  grim  old  Bishop,  clad  in  his  gorgeous  cei 
monial  robes,  stretching  out  his  hands  over  the  head  of  tl 
new  priest  and  pronouncing  that  most  deadly  of  all  tl 
Christian  curses:  'Whose  sins  thou  dost  forgive  they  are  foi 
given;  and  whose  sins  thou  dost  retain,  they  are  retained.' 

Sinclair  attacks  all  churches  and  Mr.  Burtness  rea< 
his  attack  on  the  Lutheran  Church,  appearing  on  Pa« 
105  of  Sinelir's  book: 

ATTACKS   LUTHERAN   CHURCH 

"The  Lutheran  Reformation  has  been  most  truly  religious 
and  creative  when  it- embraced  the  whole  of  human  life  and 
enlisted  the  enthusiasm  of  all  ideal  men  and  movements. 
When  it  became  'religious'  in  the  narrow  sense,  It  grew 
scholastic  and  spiny,  quarrelsome  and  impotent  to  awaken 
high  enthusiasm  and  noble  life.' "  And  then  the  author  takes 
up  the  line  and  says"  "As  a  result  of  Luther's  treason  to  hu- 
manity, his  church  became  the  state  church  of  Prussia,  and 
Bible-worship,  and  Devil-terror  played  their  part,  along  with 
the  Mass  and  the  Confessional,  in  building  up  the  Junker 
dream." 

In  the  books  which  Burtness  found  Birth  Conti 
was  also  dealt  with,  and  from  page  227. 

BIRTH     CONTROL 

"I  assert  that  the  control  of  our  thinking  on  ethical  ques 
tions  by  minds  enslaved  to  tradition  and  priestcraft  is 
unmitigated  curse  to  the  race.  The  armory  of  science  is  fi 
of  weapons  which  might  be  used  to  slay  the  monsters  of  dis- 
ease and  vice — but  these  weapons  are  not  allowed  to  be  em- 
ployed, sometimes  not  even  to  be  mentioned.  *  *  There 
exists  a  simple,  entirely  harmless,  and  practically  costless 
method  of  preventing  conception  which  would  enable  us  to 
check  the  blind  and  futile  fecundity  of  nature,  and  to  mul- 
tiply as  Gods  instead  of  as  animals." 

Grotesqueness  of   Religion 

At  the  bottom  of  page  273  you  find  this: 

"All  this  is  grotesque;  but  it  is  what  happens  to  religions 
in  a  world  of  commercial  competition.  It  happens  riot  merely 
to  Christian  Science  and  New  Thought  religion,  Mazdaznau 
and  Zionists,  Holy  Roller  and  Mormon  religions,  but  the 
Catholic  and  Episcopalian,  Presbyterian  and  Methodist  an4 
Baptist  religions.  For  you  see,  when  you  are  with  the  wolvea 
you  must  howl  with  them;  when  you  are  competing  with 
fakirs,  you  must  fake.  The  ordinary  Christian  will  re-ad  the 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       195 

claims  of  the  New  Thought  fakirs  with  contempt;  but  Iiave 
I  not  shown  the  Catholic  Chuch  publishing  long  lists  of 
money-miracles?  Have  I  not  shown  the  Church  of  God  So- 
ciety, our  exclusive  and  aristocratic  Protestant  Episcopal 
Communion,  pretending  to  call  rain  and  to  banish  pestilence, 
to  protect  crops  and  win  ware  and  heal  those  who  are  'sick 
in  estate'  that  is,  who  are  in  business  trouble?" 

I  re-sent  the  suggestion  that  this  book  is  an  attack  of  one 
church  against  another.  Not  a  tall.  It  condemns  them  all 
equally  without  exception.  On  page  282  I  quote  the  follow- 
ing. (Mr.  Burtness  reads). 

"From  that  time  on  Christianity  has  been  what  I  have 
shown  in  this  book,  the  chief  of  the  enemies  of  social  -pro- 
gress. From  the  days  of  Constantino  to  the  days  ot  Bismarck 
and  Mark  Hanna,  Christ  and  Caesar  have  been  one,  and  the 
church  has  been  the  shield  and  armor  of  predatory  and 
ecoomic  might.  With  only  one  qualification  to  be  noted,  that 
the  church  has  never  been  able  to  suppress  entirely  the 
memory  of  her  proletarian  founder."  Mr.  Burtness  added: 

Contempt  of  U.  S.  Authorities 

"I  wish  I  cou!d  take  the  time  to  quote  the     sani*1 
ments  that  I  quoted  on  the  floor  of  this  House  from  'Love 
and  Ethics'  wherein  the  author  stated  in       •    '    rv—  +**r  the 
institutions  that  we-  believe  in  should  *         f  aside  a~  •"•  where- 
in she  preaches  the  doctrine  of  Free  Lovo 

"I  furthermore  won't  take  time  to  quote  from  Meyer's 
'History  of  the  Supreme  Court,'  but  I  want  to  say  that  the 
book  is  ore  in  which  the  author  condemns  every  Pre  icU-nt 
from  Washington  down  to  the  present  time  as  being  corrupt 
and  appointing  equally  corrupt  men  to  the  position  of  judges 
on  the  Supreme  Court;  that  it  condemns  every  Chief  Justice 
that  we  ever  had  from  Chief  Justice  Jay  to  our  present  Chief 
Justice  White,  and  I  want  again  to  say  that  remarks  or  state- 
ments of  that  kind  when  made  from  books  or  from  the  plat- 
form, wherever  they  are  made,  are  not  remarks  that  will 
tend  to  cause  us  to  honor  our  institutions  or  our  country  or 
its  flag. 

Here  are  a  few  ([notations  from  Ellen  Keyes: 
"The  ethical   conception  that     makes  the  right     of 

parenthood  dependent  upon  the  present  fixed  forms  of 

marriage  must  f <i  II." 

"A  nation  in  which  marriages  are  contracted  only 

from  deep  personal   Jove  is  at  a  great   disadvantage 

s  against  other  nations  and  must  disappear. " 

i\vo  unmarried  persons  give  life  to  a  chil 


196  THE  NONPARTISAN  LEAGl'K 

nature  often  rewards  passion  by  endowing  the  chil< 
with  splendid  equipment." 

"The  fact  that  in  some  free  unions  love  dies  prov< 
nothing  against  this  possibility  of  a  finer  love  thi 
divorce." 

' '  The  dissolution  of  marriage  should  be  made  depend- 
ent upon  the  will  of  one  of  the  married  pair." 

"And  I  want  to  say  these  things  right  now,  because  I  want 
you  to  understand  that  I  don't  believe  that  just  because  the 
present  board  of  Administration  has  taken  out  one  link  in  the 
entire  chain — that  they  have  destroyed  the  system.  Not  »t 
all.  It  is  there,  and  it  can't  be  destroyed  absolutely  until  yon 
kill  the  present  bill,  so  long  at  least  as  the  man  who  now 
dominates  that  Board,  ("Rev."  George  A.  Totten,  Sr.)  re- 
mains upon  it,  for  he  does  not  deny  that  he  favored  the  pres- 
ence of  the-se  books  in  our  traveing  library.  He  made  the 
statement  at  a  board  meeting  according  to  a  written  state- 
ment signed  by  one  of  the  members  of  that  board,  to  the  oth- 
er members  which  statement  I  shall  be  glad  to  place  in  the 
records,  if  you  want  it. 

Townley  has  often  said  that  the  way  to  get  Social- 
ism permanently  was  to  teach  it  to  the  children — that 
was  the  easiest,  quickest  and  most  permanent  way  of 
doing  the  business. 

What  has  Socialism  done  for  North  Dakota?  Has 
it  aided  or  crippled  the  school  system?  WHAT  AKE 
THE  UNDENIABLE  FACTS? 

The  League  in  1916  elected  Neil  C.  Macdonald,  who 
had  been  rural  school  inspector,  Superintendent  of 
Public  Instruction.  But  his  administration  was  so  un- 
satisfactory to  the  people  of  the  state  that  two  yeara 
later  he  was  repudiated  by  a  majority  of  approximate- 
ly six  housand.  Miss  Minnie  J.  Nielson,  his  opponent, 
was  the  only  an ti -League  candidate  to  win. 

The  North  Dakota  constitution  giv^s  women  the 
right  to  vote  in  all  matters  dealing  exclusively  with. 
M-hool  matters.  The  women  therefore  rallied  behind. 
Miss  Nielson  and  by  electing  her,  gave  her  all  the 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       197 

Powers  of  the  State  Superintendent  of  Public  Instruc- 
tion. 

The  campaign  was  a  bitter  one.  Although  Macdon- 
ald,  as  Superintendent  of  Schools,  was  especially  odi- 
ous; nevertheless  he  was  "one  of  them"  and  Frazier, 
Townley  and  Eemke  proceeded  to  take  care  of  him. 

Immediately  Miss  Nielson  became  the  target  for 
Townley,  Lemke,  Governor  Frazier,  and  Neil  C.  Mac- 
donald. 

The  League  papers  all  over  the  State  abused  Miss 
Nielson,  saying  she  was  not  qualified  to  hold  office, 
With  the  election  only  a  few  days  away,  Miss  Nielson 
came  to  my  office  and  asked  me  for  an  opinion  as  to 
whether  or  not  she  was  legally  qualified  to-hold  the  po- 
sition. After  a  careful  investigation  of  the  facts,  I,  as 
Attorney  General,  gave  the  following  opinion: 

October  29,  1918. 
Miss  Minnie  J.  Nielson, 

Valley  City,  N.  D. 
Dear  Madam:  — 

OPINION 

I  have  your  letter  of  recent  date  in  which  you  set  forth 
that  you  are  a  duly  qualified  elector  for  the  office  of  Super- 
intendent of  Public  Instruction  in  this  state  and  over  the 
age  of  twenty-five  years.  You  ask  if  under  the  laws  of  this 
state  you  can  qualify  to  hold  the  office  of  Superintendent  of 
public  Instruction. 

In  reply  I  will  advise  you  that  Section  82  of  the  oCnstitu- 
tion  of  the  State  of  North  Dakota  provides  for  the  election 
of  a  Superintendent  of  Public  Instruction  and  prescribes  the 
qaulification  fof  eligibility  to  such  office,  which  are  that  the 
person  seeking  to  qualify  for  the  same  shall  have  attained 
the  age  of  twenty-five  years,  shall  be  a  citizen  of  the  United 
States,  and  shall  have  the  qualifications  of  a  state  elector. 

The  Supreme  Court  of  this  State  has  held  that  the  legisla- 
ture can  neither  increase  nor  diminish  the  qualifications  fix- 
ed  by  the  Constitution  for  holding  office,  and  in  the  case  ot 
Johson  vs.  Grand  Forks,  County,  113  N.  W.  1070,  held: 

"The  rule  is  that,  when  the  Constitution  of  a  state  has  pre- 
scribed qualifications  for  voters  and  defined  the  qualifications 
of  an  officer,  it  is  not  competent  for  the  Legislature  to  add 
or  in  any  way  alter  such  prescribed  and  defined  qualifica- 


198  THE  NONPARTISAN  LEAGUE 

tions,  unless  the  power  to  do  so  is  expressly  or  by  ne< 
implication  conferred  upon  it  by  the  Constitution  itself. 
There  being  no  provision  in   the  Constitution,  either 
pressly   or  by   ecessary   implication,   conferring  such   pow< 
upon  the  legislature,  I  am  of  the  opinion  that  that  portion 
of  Section  1105  of  the  Compiled  Laws  of  1913,  which  adds 
to  the  qualifications  for  the  office  of  Superintendent  of  Pub- 
lic Instruction,  is  unconstitutional,  and  that  you,  possessing 
the  qalifications  for  such  office  found  in  said  Section  82  of 
the  Constitution,  can  qualify  under  the  laws  of  this  state  for; 
the  office  of  State  Superintendent  of  Public  Instruction. 
Yours  very  truly, 

WILLIAM  LANGER, 
WL:B  Attorney  General. 

I  realized  that  this  meant  thousands  of  votes  to  her,; 
one  way  or  the  other. 

The  opinion  was  sent  broadcast  and  Miss  Nielson 
was  elected.  A  few  weeks  after  the  election,  Townley 
met  me  in  Bismarck,  at  the  McKenzie  Hotel,  and 
blamed  me  for  the  opinion  that  defeated  Mr.  Maedon- 
ald  and  demanded  to  know  why  I  had  given  it. 

Later  the  rumor  went  out  that  these  men  were  go- 
ing to  refuse  to  let  Miss  Nielson  have  the  office,  and 
were  going  to  keep  Macdonald  in  that  position.  I  told 
the  Socialists  that  I  was  going  to  see  that 
Miss  Nielson  got  the  office  to  which  the  people  had 
elected  her. 

On  the  4th  day  of  January,  Miss  Nielson  arrived  to 
take  the  office  and  they  refused  to  turn  it  over.  I  be- 
came her  attorney  and  secured  the  office  for  her,  win- 
ning her  case  in  District  Court  and  in  the  Supreme 
Court.  While  these  lawsuits  were  pending,  Walter 
Thomas  Mills  and  Neil  C.  Macdonald  were  eating  to- 
gether daily  in  the  little  restaurant  back  of  the  Mc- 
Kenzie Hotel  and  decided,  after  seeing  Townley  and 
Lemke,  to  draft  a  bill  providing  for  the  Board  of  Ad- 
ministration to  have  control  of  all  educational,  chari- 
table and  penal  institutions  in  the  State. 

The  bill  provided  originally  for  only  three  members 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       199 

to  be  appointed  by  the  Governor.  I  begged  them  not 
to  pass  a  bill  of  that  kind.  Lernke  said  that  the  bill 
was  modeled  after  one  in  Kansas  and  although  I  prov- 
ed to  him  that  it  wasn't,  the  best  I  could  do  was  to  get 
them  to  put  Miss  Nielson  on  the  Board.  They  did,  but 
to  off-set  her  vote  they  put  on  John  Hagen.  And  when 
Townley  says,  as  he  afterwards  did  in  the  "  North  Da- 
kota Leader"  that  the  time  for  me  to  have  protested 
against  this  bill  was  when  it  was  pending,  he  is  deceiv- 
ing you.  I  DID  PROTEST— I  WENT  TO  HEAD- 
QUARTERS" "the  place  where  a  man  would  naturally 
go  to  make  his  protests. 

The  Nielson  matter  was  the  beginning  of  my  fight 
on  Townley.  They  passed  Senate  Bill  No.  134,  known 
as  the  Board  of  Administration  Bill.  This  gave  the  con- 
trol of  the  educational  system  back  to  the  League.  Un- 
der the  old  system,  there  were  three  boards,  the  State 
Board  of  Education,  the  State  Board  of  Regents  and 
the  State  Board  of  Control.  The  State  Board  of  Edu- 
cation had  charge  of  the  Common  and  High  Schools, 
The  state  superintendent  was  chairman  of  this  Board, 
The  State  Board  of  Regents  had  charge  of  the  high- 
er institutions.  The  State  Board  of  Control  had  charge 
of  the  penal  and  charitable  institutionsT^he  State  Su- 
perintendent was  not  a  member  *of  the  State  Board  of 
Regents  nor  the  State  Board  of  Control.  If  Neil  C. 
Macdonald  had  been  re-elected  these  three  mentioned 
boards  would  have  been  retained  and  the  State  Su- 
perintendent, besides  being  chairman  of  the  Stata 
Board  of  Education  would  also  have  been  made  a 
member  of  the  State  Board  of  Regents.  THIS  WAS; 
MACDONALD 'S  PLAN  BEFORE  HE  WAS  DE- 
FEATED. SEE  HIS  BIENNIAL  REPORT  (WRIT. 
TEN  BEFORE  ELECTION)  ON  PAGE  95  UNDEK 


200  THE  NONPARTISAN  LEAGUE 

"RECOMMENDATIONS:"  "THE  STATE  SUPER- 
INTENDENT SHOULD  BE  AN  EX-OFFICIO  MEM- 
BER OF  THE  BOARD  OF  REGENTS  AS  IN  THE 
CASE  OF  ALL  PROGRESSIVE  STATES. " 

Senate  Bill  No.  134  did  away  with  all  three  boards 
and  established  one  board  known  as  the  Board  of  Ad- 
ministration. They  passed  Senate  Bill  No.  134,  wit! 
the  provision  to  have  control  of  all  educational,  char- 
itable and  penal  institutions.  Note  especially  that  char- 
itable and  penal  institutions  were  included.  They  knew 
that  the  bill  would  be  referred  and  that  by  including1 
questions  other  than  school  affairs  THE  WOMEN 
WOULD  BE  UNABLE  TO  VOTE  ON  IT.  This  was,, 
of  course,  done  deliberately,  and  when  the  bill  was 
referred,  the  women  who  voted  for  Miss  Nielson  were 
unable  to  vote  that  she  retain  the  duties  to  which  they 
had  elected  her.  YET  THESE  MEN  NOW  CLAIM 
THAT  THEY  ARE  IN  FAVOR  OF  WOMAN  SUF- 
FRAGE — strange  that  when  I  was  out  campaigning 
for  woman  suffrage  in  1914  when  the  people  of  North 
Dakota  voted  upon  it,  that  neither  Lemke,  Frazier  or 
Townley  were  out  advocating  it! 

Senate  Bill  134  authorizes  a  BOARD  of  five  mem- 
bers, three  of  them  appointed  by  Governor  Frazier 
and  REMOVABLE  FOR  CAUSE  by  him,  which  sim- 
ply means  that  the  majority  of  the  Board  is  always  in 
control  of  the  Governor,  who  is  in  the  control  of 
Townley  and  Lemke.  The  other  two  members  are  the 
Commissioner  of  Agriculture  and  Labor  and  the  Su- 
perintendent of  Public  Instruction.  This  bill  provides 
that  this  Board  take  over  absolute  control  of  all  the 
penal,  charitable  and  educational  institutions  of  the 
state,  and  have  generl  supervision  over  the  public 
schools. 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       201 

Senate  Bill  134  gives  the  State  Board  of  Education, 
which  is  the  Governor,  power  to  reach  down  in  every 
loxjal-  community-IT  CAN  DICTATE  THE  POLICIES 
TO  BE  FOLLOWED,  COURSES  TO  BE  STUDIED, 
TEXT  BOOKS  TO  BE  USED. 

The  presidents  or  heads  of  State  Institutions  AND 
THE  STATE  SUPERINTENDENT  OP  PUBLIC  IN- 
STRUCTION  ARE  MADE  RESPONSIBLE  TO  THE 
BOARD. 

And  what  men  did  Lemke  and  Townlcy  have  their 
jelly-fish  Governor  appoint  on  the  Board  of  Adminis- 
tration? George  Totten  of  Bowman,  noted  for  his  ad- 
of  radicalism,  a  brother-in-law  of  Mrs.  Totten 
who     entertained     Kate     Richards  O'Hare     at     the 
time  she  made     her     seditious     speech — Totten     who 
been  in  charge  of  the  Public  Service  Bureau,  who 
pu:  over" the  newspaper  graft;  P.  M.  Casey  of  Lisbon, 
who  ran  on  the  League  ticket  for  State  Treasurer  in 
1016;  Robert  Muir,  brother-in-law  of  Le'inke,  and  the, 
ourse,  J.  N.  Hagen,  Commissioner  of  Agriculture 
Labor  and  Miss  Nielson  are   ex-officio     on     the 

A.  Totten  was  made  Chairman  of  the  Board, 

the  same  Totten  who  is  reported  to  have  made     the 

incut  sometime  ago,  that  he  had  grown  beyond 

Socialism  and  believed  in  the     teachings     of     Emma 

Gold  in  an.  lie.  as  Chairman  of  the  Board  of  Adminis- 

•  ii,  is  the  head  of  our  entire  school  system. 
Cue  of  the  first   nets  of  this  new  board  was  to  ere-  • 

a  now  office  called  "Educational  Advisor 
to  the  Board  and  General  School  Inspector. "  They  ap- 
pointed Neil  C.  Macdonald,  the  defeated  Nonpartisan 
League  candidate  for  State  Superintendent  to  this  new 


202  THE  NONPARTISAN  LEAGUE 

position  at  the  same  salary  he  had  received  as  State 
Superintendent. 

This  Educational  Commission  spoken  of  before  was- 
to  consist  of  five  members,  one  being  the  State  Su- 
perintendent as  ex-officio  member  and  chairman,  and 
four  others  appointed  by  the  Board  of  Administration. 
Whom  did  they  appoint?  Four  supporters  and  friends 
of  Macdonald's,  the  defeated  candidate,  as  members 
of  this  commission. 

At  the  first  meeting  of  the  Educational  Commission, 
the  office  of  Secretary  of  the  Commission  and  Super- 
visor of  Certification  was  created  and  E.  P.  Crain  was 
appointed  to  this  position.  This  man  had  been  in 
charge  for  a  time  of  certification  in  the  State  Super- 
intendent's office  when  Macdonald  was  State  Super- 
intendent. New  office  rooms  were  arranged  for  this 
new  Department  of  Certification  in  the  Capitol  build- 
ing, and  furnished  by  taking  funds  from  the  high 
school  and  rural  aid  funds.  They  removed  from  the 
State  Superintendent's  office  nine  cart  loads  of  rec- 
ords, books  and  other  material  pertaining  to  certifica- 
tion which  had  been  a  part  of  that  office  since  state- 
hood. Under  the  old  law,  the  State  Superintendent  was 
President  of  the  Board  of  Education,  and  the  Deputy 
Superintendent  was  Secretary,  and  the  work  of  certi- 
fication of  teachers  was  done  by  and  through  the  of- 
fice of  State  Superintendent.  Now  the  State  Super- 
intendent does  not  have  anything  to  do  with  certifi- 
cation of  teachers,  does  not  see  the  examination  pa- 
pers, and  is  not  even  permitted  to  sign  the  teachers* 
certificates.  These  are  signed  by  George  A.  Tottenr 
Chairman  of  the  Board  of  Administration  and  E.  P. 
Grain.  E.  P.  Crain  is  only  the  nominal  head  of  the  cer- 
tification department,  for  he  is  also  Secretary  of  tiie 


ITS,  BIRTH,  ACTIVITIES  AND  LEADERS       203 

State  Motor  Vehicle  Registration  Department  and 
<3raws  a  salary  as  such.  He  has  an  office  down  town  in 
the  Bank  of  North  Dakota  building,  and  does  not  stay 
at  the  Capitol.  In  reality,  Mrs.  N.  C.  Macdonald  has 
charge  of  the  certification  department  and  uses  E.  P. 
Grain's  rubber  stamp  to  sign  the  letters,  hence  the 
public  is  deceived.  The  Macdoiialds,  although  ejected 
from  the  control  of  the  schools  by  the  vote  of  the  pea- 
pie.  ARE  BACK  IN  THE  SADDLE  IN  SPITE  OF 
THE  VOTERS. 

Why  I 

•  •'Muse  they  are  good  spreaders  of  the  Socialistic 
propaganda.  It  is  well,  the  leaders  believe,  to  have  in 
charge  of  certificating  the  teachers,  those  persons  who 
are  sympathetic  with  the  doctrine  the  Socialists  want 
taught  in  the  schools. 

In  the  past  the  President  of  the  State  University 
has  been  the  State  High  School  Examiner,  but  the 
Board  of  Administration  took  this  work  away  from 
]  'RESIDENT  KANE  and  made  E.  P.  GRAIN  High 
SeLool  Examiner. 

Yes,     the     same     E.     P.     Grain,  who  is  Secretary 
of  the  Motor  Vehicle  Registration  Department     and 
"otary  of  the  Educational  Commission,  and  nomin- 
ally the  head  of  the  teachers'  certification  department, 
now  is  State  High  School  Examiner  also. 

All  letters  regarding  eighth  grade  and  high  school 
examinations  bear  the  now  familiar  rubber  stamp  sig- 
nature—E.  P.  ('rain. 

Section  6  of  the  Board  of  Administration  law  pro- 
vides that  the  Board  of  Administration  "shall  have 
power  to  appoint 'a  temporary  School  Commission  to 
consist  of  the  Superintendent  of  Public  Instruction, 
one  county  superintendent,  one  city  superintendent, the 


204  THE   XOXPARTISAN  LEAGUE 

High  School  Inspector  and  one  other  member,  to  in- 
vestigate the  kinds  and  costs  of  library  books,  the 
text  books  for  use  in  public  schools  in  this  state,  and 
the  question  of  uniformity  of  text  books,  AND  THE 
PRINTING  AND  DISTRIBUTION  OF  SAME  BY 
THE  STATE.  x  x  x  Said  commission  shall  re- 
port to  the  Board  on  or  before  July  1,  1920,  its  find- 
ings and  recommendations,  and  therefore  shall  cease 
to  exist.  "AND  THE  PRINTING  AND  DISTRIBU- 
TION OF  SAME  BY  THE  STATE"  is.  the  very  im- 
portant part  of  this  provision.  If  the  State  controlled 
by  the  Socialists  only  could  "PRINT  AND  DISTRI- 
BUTE THE  PUBLIC  SCHOOL  TEXT  BOOKS  !ALAs- 

But  there  is  no  serious  fault  they  made  in  drafting 
that  law.  It  specified  all  the  members  to  be  appointed 
except  one.  They  realized  too  late  that  the  State  Su- 
perintendent could  not  be  depended  011  to  give  a  fa> 
vorable  report  011  state  printing  of  text  books,  neith- 
er could  the  High  School  Inspector,  appointed  by 
the  State  Superintendent,  and  no  county  superintend; 
ent  or  city  superintendent  could  be  found  that  would 
give  a  favorable  report  on  this. 

In  the  First  Annual  Report  of  the  Board  of  Admin- 
istration repared  and  pready  for  ready  for  distribu- 
tion for  the  last  special  session  of  the  Legislature,  is 
found  on  Page  !U  this  recommendation  to  the  Gover- 
nor and  the  Legislature:  "That  Senate  Bill  No.  134 
(The  Board  of  Administration  law)  passed  by  the  last 
Legislative  Assembly  be  amended  as  follows:  Sub- 
stituting for  the  word  'Superintendent  of  Public  In- 
struction, one  Countq  Superintendent,  and  one  City. 
Superintendent,  the  High  School  Inspector  and  one 
other  member,'  in  section  6  of  this  law,  the  following, 
words:  'Professors  or  other  experts  in  education  and 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       205 

social  economy  from  the  University  or  the  Agricul- 
tural College  or  the  State  Normal  Schools  OR  ELSE- 
WHERE FROM  WITHIN  THE  STATE. " 

By  changing  the  law  in  this  way  it  would  have  been 
broad  enough  to  make  it  possible  to  get  the  right  kind 
of  a  commisiion;  a  commission  which  would  have  giv- 
en the  right  kind  of  a  report.  But  before  the  special 
session  could  get  around  to  enact  the  suggested  amend- 
ment, the  bomb  shell  thrown  into  the  House  of  Repre- 
sentatives by  Representative  Burtness  exploded  and 
the  condition  in  which  he  found  the  State  Traveling 
Library  was  disclosed  on  the  floor.  After  that  they  did 
not  dare  have  any  such  amendment,  because  the  whole 
scheme  was  laid  open.  July  1,  1920,  came,  the  date 
set  for  the  commission  to  report,  but  no  commission 
had  been  appoinated. 

The  following  is  another  recommendation  found  on 
page  34  of  the  First  Annual  Report  of  the  Board  of 
Administration  which  was  prepared  for  the  last  spe- 
cial session:  "That  the  words  'Superintendent  of 
Public  Instruction'  in  Sections  82  adn  83  of  Article  III 
and  in  Section  156  of  Article  IX  of  the  Constitution, 
be  omitted  and  that  the  office  be  abolished  or,  if 
maintained,  made  appointive  through  the  Board  of 
Administration;  and  that  in  lieu  of  the  words  'be 
elected'  in  Section  150  of  Article  VI  IT  of  the  Consti- 
tution, the  words  'be  appointed  by  the  Board  of  Ad- 
ministration' be  substituted. 

Yet  Town  ley  and  his  lecturers  said  that  no  power 
would  be  taken  from  the  State  Superintendent  of  Pub- 
lic Instruction  but  more  given  her.  True,  she  is  a 
member  of  the  Board  of  Administration,  but  Miss 
Nielson  says  that  time  and  time,  again  the  Hoard  had 
held  meetings  in  the  State  Capitol  when  she  was  in 


206  THE  NONPARTISAN  LEAGUE 

the  building,  and  that  she  has  not  been  notified  of  the 
meetings.  She  has  received  no  minutes  of  their  meet- 
ings for  over  a  year,  although  she  put  in  a  written  re- 
quest for  them. 

True,  she  is  a  member  of  the  Board.  But  what  power 
has  she?  When  the  Board  voted  to  make  Neil  Mac- 
donald,  the  man  whom  she  defeated,  Educational  Ad- 
visor to  the  Board  of  General  School  Inspector,  she 
protested  but  had  no  power  to  prevent  their  action. 
True,  she  is  a  member  of  the  Board,  but  when  the 
Board  voted  to  take  the  work  of  certification  the 
teachers  of  the  State  out  of  her  office,  she  protested, 
but  had  no  power  to  prevent  their  action.  True,  she  is 
a  member  of  the  Board,  but  when  the  Board  voted  to 
give  the  work  of  preparing  eighth  grade  and  high 
school  questions,  and  conducting  the  examinations  for 
same  over  to  E.  P.  Grain,  she  protested  but  had  no 
power  to  prevent  their  action.  And  so  it  has  gone  all 
along  the  line.  Miss  Neilson  is  powerless  with  four 
against  her. 

It  is  plain  the  plan  of  the  Nonpartisan  leaders  is  to 
get  complete  control  of  the  entire  educational  system 
of  the  state,  they  well  know  that  AS  THE  CHILDREN 
APE  THOUGHT  SO  WILL  THE  NEXT  GENERA- 
TION THINK  AND  ACT.  There  could  be  no  beter 
agency  for  inculcating  and  spreading  Socialistic  prop- 
aganda than  the  schools. 

The  State  Board  of  Education,  the  Board  of  Re- 
gents, and  the  Board  of  Control  were  put  out  of  ex- 
istence, and  this  one  Board  of  Administration  sub- 
stituted. 

Section  4  of  the  Board  of  Administration  Act,  gives 
the  Board  power  to  employ  officers  and  assistants,  in- 
cluding 


ITS  BIETH,  ACTIVITIES  AND  LEADERS       207 

"Directors  of  vocational  training, 

4 'School  inspectors, 

"Business  managers, 

"Accountants,  and 

"Employees," 

as  they  deem  necessary.  Trust  them  not  to  overlook 
the  political  side  of  it ! 

Under  the  law,  the  Board  of  Administration  has 
charge  of  the  qualifications  of  employees,  and  may 
remove  such  employees,  "when,  in  its  judgment,  the 
public  service  demands  it."  THEBE  ISN'T  EVEN  A 
PRETNSE  OF  ANY  RESTRICTION  ON  THE 
BOARD'S  REMOVAL  POWER-It's  judgment  is  the 
determining  factor.  Absolute  subserviency  and  sub- 
mission can  be  demanded  and  obtained — IF  IT  ISN'T 
GIVEN,  OFF  COMES  THE  POLITICAL  HEAD  OF 
THE  OFFENDING  EMPLOYEE. 

And  who  have  lost  their  political  heads  ?  Why  the 

President  of  the  Valley  City  Normal  has  been  re- 
moved ; 

The  President  of  the  Mayville  Normal  is  gone; 

The  President  of  the  School  of  Science  at  Wahpeton 
has  left ; 

The  Secretary  of  the  Public  Library  Commission 
has  been  removed; 

The  President  of  the  State  University  has  resigned, 
and  the  removal  of  his  successor  attempted; 

The  Ward  on  of  the  Penitentiary  has  resigned  oq 
request ; 

The  Head  of  the  Reform  School  has  been  asked  to 
resign ; 

The  President  of  the  School  of  Forestry  is  no  lon- 
ger with  us; 


208  THE  NONP ARTISAN  LEAGUE 

The  President  of  the  Minot  Normal  School  has  re- 
signed. 

E.  F.  Ladd,  the  President  of  the  Agricultural  Col- 
lege, who  has  been  their  furnisher  of  propaganda,  has 
been  REWARDED  by  being  endorsed  for  the  United 
States  Senate.  OH,  NO,  NORTH  DAKOTA  SCHOOLS 
ARE  NOT  IN  POLITICS ! 

Section  7,  of  the  Board  of  Administration  Act, 
however,  provides  for  the  appointment  of  a  subordi- 
nate commission,  called  the  "Educational  Commis- 
sion,"- -"to  have  charge  and  supervision  of  the  certi- 
fies lion  of  teachers,  standardization  of  schools,  exam- 
inations for  eighth  grade  and  high  school  pupils,  prep- 
aration of  courses  of  study  for  the  several  classes  of 
c  schools,  and  such  other  work  as  may  be  assign- 
ed to  it  by  the  board."  This  Commission  can  only 
RECOMMEND  to  the  Board  of  Administration,  as  the 
rovides  that  the  work  of  the  Commission  is  UN- 
DER THE  DIRECTION  AND  APPROVAL  OF  THE 
BOARD  OF  ADMINISTRATION.  So  these  powers 
I ar  11  so  control  of  the  public  schools  completely  and 
•  itely  into  tlie  hands  of  the  Board  of  Admims- 

011. 

<  ertifieatiou    of   teachers— DETERMINATION      OF 
WHAT  SHALL  OR  SHALL  NOT  BE  PRINTED  IN 
THE  TEXT  BOOKS— the  fixing  of  courses  of  study 
in  the  GRADE  AND  HIGH  SCHOOLS-these  exclu- 
powers  HIV  given  by  the  bill  to     the     APPOIN- 
TEES of  the  GOVERNOR.     Complete  control  of  the 
;al  Schools,  Agricultural  College  and  University 
so  .given—they  are  subject  to  political  control. 
.'vis  mentioned  before,  naturally,  a  bill  of  this  kind 
\    g  referended,  and  38,000  men  signed  the  referen- 
dum petitions.  The  Townley  newspapers  had  a  chance 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       209 

to  either  tell  the  truth  or  lie— if  the  papers  sincerely 
desired  the  farmers'  welfare,  here  was  an  opportunity 
which  Townley  could  seize — but  he  grabbed  it  for 
LYING  DECEPTION.  Here  is  a  copy  of  the. " Cour- 
ier-News "—Townley 's  own  newspaper  of  which  Wil- 
liam Lemke  is  President,  dated  the  21st  day  of  June, 
1919.  Read  what  Townley  said  in  his  speech  given  at 
Bismarck  on  June  20th,  reported  in  his  own  paper  the 
next  day : 

"One  of  the  biggest  pieces  of  deception  is  that  the' 
educational  bill,  which  is  being  referred,  would  take 
away  all  the  powers  from  Miss  Nielson,  the  superin- 
tendent of  public  instruction.  The  truth  is  that  Miss 
Nielson  will  be,  under  this  law,  the  first  superintend- 
ent to  have  a  voice  in  the  conduct  of  all  the  state  in- 
rions.  She  will  be  the  first  woman  in  the  history  of 
tin  state  to  have  the  oportunity  to  exercise  a  woman's 
influence  where  it  is  needed  most,  in  the  reform  school 

•cnitentiary. ' ' 

"Mr.  Townley  then  read  from' the  session  laws  the 
:utement  that  none  of  the  powers  of  the  state 
temlents  should  be  limited  by  the  bill.  "Here 
is  the  truth  that  no  authority  or  opportunity  will  be 
i-om  Miss  Xielson,"  he  said,  "the  legislature  is 
ihis  lady  two  or  three  times  more  power  than 
nllior  snperitendent  ever  had,  mid  all  her  old  pow- 
er? us  well.  Miss  Xielson 's  best  friends  are  the  farm- 
er.- -vho  will  vote  next  Thursday  to  give  her  those  new 
ers.  And   her  worst    cnt'inies   are  the  people  who, 
i'  the  pretense  of  protecting  a  woman,  are  doing 
th"  ^miie  tiling  that  they  are  charging  the  farmers'  leg- 

\vith  doing." 

nley  and  his  cohorts  KNEW  THEY  WERE  LY- 
.  Tln-y  said  that  none  of  Miss  Nielson  Ts     powers 


210  THE  NONPARTISAN  LEAGUE 

would  be  taken  away  from  her;  that  she  was  going  to 
have  MORE  POWER  than  any  State  Superintendent 
of  Public  Instruction  had  ever  had.  They  declared 
specifically — three  days  before  the  election— that  Miss 
Nielson's  powers  would  not  be  curtailed  if  the  people 
voted  for  this  act.  Even  the  Governor  himself  went  in- 
to the  Secretary  of  State's  office  and  requested  him 
to  make  the  following  statements  on  the  official  ballot : 
"Powers  and  duties  of  the  Superintendent  of  Public 
Instruction  shall  not  be  abridged.  See  Section  9,  of 
the  law." 

BEFORE  AND  AFTER  ELECTION. 

All  this  about  more  power  for  the  State  Superin- 
tendent was  said  when  the  League  was  trying  to  get 
votes  for  the  new  measure.  What  did  they  do  after 
they  had  persuaded  the  people  to  vote  for  it?  Were 
they  honest  in  their  statements? 

The  law  provides  that  THE  STATE  SUPERIN- 
TENDENT SHALL  PREPARE  AND  PRESCRIBE 
THE  COURSE  OF  STUDY  FOR  ALL  COMMON 
SCHOOLS  OF  THE  STATE. 

When  the  Townley  Board  of  Administration  camt 
into  power,  it  formally  adopted  a  resolution,  introduc- 
ed by  Mr..  Hagen,  providing:  "THE  BOARD  OF  AD- 
MINISTRATION SHALL  HAVE  POWER  TO  PRE- 
SCRIBE THE  COURSE  OF  STUDY  FOR  THE  SEV- 
ERAL CLASSES  OF  PUBLIC  SCHOOLS  OF  THE 
STATE,  WE  HEREBY  EMPOWER  AND  AUTHOR- 
ISE THE  EDUCATIONAL.  COMMISSION  TO  DO 
SO." 

Miss  Nielson  protested  and  voted  against  the  reso- 
lution but  it  was  adopted  by  the  other  members  in 
spite  of  her  protests.  Did  someone  say  Miss  Nielson 
3had  power  on  this  Board?  She  then  came  to  me.  I 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       211 

appealed  to  the  Supreme  Court.  I  cited  the  League 
newspapers,  I  cited  Townley's  and  Frazier's  speeches, 
and  asked  the  Supreme  Court  to  prohibit  the  Board  of 
Administration  from  attending  to  interfere  with  the 
fixing  of  the  courses  of  study  for  the  common  schools. 
This,  the  Supreme  Court  refused  to  do.  See  175  North- 
western Reporter,  Page  563. 

They  admitted  that  it  was  Miss  Nielson's  DUTY, 
and  that  the  last  assembly  INTENDED  THAT  IT 
SHOULD  REMAIN  HER  DUTY  TO  FIX  THE 
COURSES  OF  STUDY  FOR  THE  COMMON 
SCHOOLS,  but  four  of  the  Judges  went  on  to  inter- 
pret the  act  to  mean  that  this  function  should  be  per- 
formed UNDER  THE.  "SUPERVISION-  AND  CON- 
TROL OF  THE  BOARD  OF  ADMINISTRATION, 
pursuant  to  the  specific  power  therefore  granted  in 
the  act."  Broiisou  wrote  the  opinion,  and  the  opinion 
proves  beyond  dispute  that  the  claims  of  Townley, 
Frazier,  Macdouald  and  Mills,  that  Miss  Nielson's 
powers  would  not  be  curtailed  by  the  act,  WERE 
ABSOLUTELY  FALSE.  The  act  gave  "specific  power 
to  the  Board  to  supervise  and  control  Miss  Nielson  in 
her  duties.  A  GIGANTIC  FRAUD  had  been  practiced 
on  the  voters  of  North  Dakota — they  had  been  falsely 
told  by  Townley  and  Lemke  that  the  official  elected 
by  the  people  would  keep  the  power  the  people  said 
she  should  have. 

The  Court  found  that  Section  9  specifically  reserves 
to  the  Superintendent  of  Public  Instruction  such  free- 
dom from  supervision  as  the  office  had  before  enjoy- 
ed, (but  they  add  to  this)  but  subject  to  the  " SUPER- 
VISION AND  CONTROL"  OF  THE  BOARD  OF  AD- 
MINISTRATION. 

Justice    Bronsen   said    "The    contention   that      this 


212  THE   NONPARTISAN  LEAGUE 

power  of  supervision  and  control  concerning  the  prep- 
aration of  courses  of  study  in  the  common  schools 
would  take  from  such  superintendent  such  right  and 
duty  is  unfounded.  If  such  board  has  such  specific 
right,  the  superintendent,  nevertheless,  posesses  the 
same  right  to  prescribe  and  prepare  courses  of  study 
for  such  common  schools  as  theretofore,  EXCEPT 
THAT  HER  POWER  AND  DUTY  IN  THAT  REGARD 
ARE  SUBJECT  TO  THE  SUPERVISION  AND  CON- 
TROL OF  SUCH  BOARD  OF  ADMINISTRATION." 

There  .you  have  it — the  Supreme  Court  saying  that 
she  has  the  power  EXCEPT  THAT  HER  POWER  IS 
SUBJECT  TO  THE  WILL  OF-  TOTTEN  AND  HIS 
BUNCH ! 

IT  WOULD  BE  JUST  AS  IF  THE  SUPREME 
COURT  HAD  SAID  TO  THE  FARMERS-' 'YOU 
FARMERS  CAN  STILL  PREPARE  THE  SOIL  FOR 
GRAIN  AND  DECIDE  WHAT  YOU  WILL  PLANT 
EXCEPT  THAT  YOUR  POWER  AND  DUTY  TO  DO 
THIS  IS  SUBJECT  TO  THE  SUPERVISION  AND 
CONTROL  OF  THE  BOARD  OF  BARBERS!" 

COULD  ANYTHING  BE  PLAINER? 

Could  anyone  say  MORE  CLEARLY  that  Towiiley 
and  Fra/ier  lied  when  they  said  that  Miss  Nielsen's 
powers  would  not  be  curbed?  "THERE  E'XISTS" 
said  Bronson  writing1  the  opinion,"  a  direct  legisla- 
tive intent  TO  GRANT  TO  THE  BOARD  OF  ADMIN- 
ISTRATION (THE  TOTTEX— MT7IR,  LEMKE'S  BRO- 
THER-IN-LAW, OUTFIT)  THE  SPECIFIC  POWER 
AS  STATED  IN  THE  STATUTE  TO  SUPERVISE 
AND  CONTROL  THE  COURSES  OF  STUDY  IN  THE 
COMMON  SCHOOLS  OF  THE  STATE." 

ONE   IS  ALMOST  FORCED   INTO   RELUCTANT 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       213 

ADMIRATION  FOR  •  THE  LYING  ABILITY  OF 
LEMKE,  THE  BISHQP,  AND  HIS  APOSTLES' 

The  other  opponents  of  the  bill  and  myself  had  said 
right  along  that  Miss  .Nielson 's  powers  were  taken 
away  by  it— Townley  and  Frazier  denied  this  for  the 
League— but  my  lawsuit  ended  when  four  members 
of  the  Supreme  'Court  said  that  we  were  correct.  Miss 
Nielson  was  made  simply  a  figurehead.  Townley  and 
Lemke  as  much  as  said  "The  people  of  North  Dakota 
be  damned — let  Miss  Nielson 's  friends  go  home  and 
slop  the  hogs." 

The  majority  of  the  people  voted  for  Miss  Nielson, 
but  the  SOCIALIST  LEADERS  ARE  AGAINST  US, 
so  the  majority  does  not  rule  in  North  Dakota.  This  is 
Socialist  Democracy. 


214  THE  NONP ARTISAN  LEAGUE 

CHAPTER  XV 
BILLS  THAT  DID  NOT  BECOME  LAWS 

All  history  proclaims  that  taxes  of  any  appreciable 
amount  are  immediately  shifted. 

The  best  solution  is  to  HAVE  TAXES  JUST  HIGH 
ENOUGH  TO  MAINTAIN  THE  COST  OF  THE  GOV- 
ERNMENT. Whether  the  tax  is  derived  from  the  oil 
tax,  stocks  and  bonds  tax,  or  income  tax — It  ultimately 
falls  upon  the  producer  or  consumer. 

When  the  Socialist  leaders  raised  the  tax  in  North 
Dakota  on  oil  one  cent  a  gallon,  they  "DIDN'T  SOAK 
THE  OIL  COMPANIES,"  because  the  oil  companies 
-simply  raised  the  price  of  oil  the  amount  of  the  tax 
and  the  farmer  who  has  a  car  or  tractor  must  pay  the 
one  cent  a  gallon  additional.  That  is  why.  some  of  the 
users  of  gasoline  in  Fargo  go  o  Moorhead.  Minnesota, 
-to  get  their  .gasoline. 

The  income  tax  is  a  good  tax  and  ought  to  be  high- 
er than  what  it  was  in  order  to  have  ''gotten"  the 
profiteers  during  and  after  the  war.  IT  IS  ALSO 
SHIFTED  TO  SOME  EXTENT.No  matter  how  MUCH 
THE  LEADERS  OF  THE  LEAGUE  MAY  SAY 
ABOUT  THE  TAX  BEING  LOWERED,  THE  FA£T 
IS  THAT  FOR  THE  YEAR  1918.  THE  TOTAL  TAX 
FOR  STATE  PURPOSES  WrAS  $1,769,091.65  and  that 
in  1919,  UNDER  THE  SOCIALIST'S  RULE.  THE 
AMOUNT  FOR  STATE  PURPOSES  WTAS  $3,742,- 
616.08.  THIS  IS  FOR  STATE  PURPOSES  AND 
"WITH  THIS  THE  COUNTY  COMMISSIONERS  AND 
BOARD  OF  SUPERVISORS  HAD  NOTHING  TO 
DO.  This  was  for  state  purposes  alone.  "* 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       *2W 

The  Socialist  leaders  are  the  worst  enemies  that  the 
farmers  could  have.  As  shown  in  a  previous  chapter, 
the  farmers  who  used  to  pay  51.418  per 
cent  of  the  taxes  now  pay  70.36  per  cent.  And  this 
is  the  program  of  Roylance,  the  man  who  was  import- 
ed from  Utah  by  the  Socialists  to  put  over  the  pro- 
gram—Roylance,  the  man  who  ADVOCATED  THE 
SINGLE  TAX. 

Walter  Thomas  Mills,  who  was  running  on  the  So- 
cialist ticket  for  United  States  Senator  against  Hiram 
Johnson,  Republican,  when  Townley  employed  him  to 
go  speaking  in  North  Dakota,  in  his  book  called  "The 
Struggle  for  Existence, "  says  on  page  452: 

"In  America,  in  ordinary  discussion,  the  term  mid- 
dle class  has  come  to  apply  to  the  'petty  bourgeois/ 
that  is,  to  the  small  manufacturer  and  the  small  busi- 
ness man.  THE  SMALL  FARMER  HAS  COME  AL- 
SO TO  BE  INCLUDED  IN  THE  MIDDLE  CLASS  IX 
AMERICAN  DISCUSSION." 

And  on  page  381  he  said : 

"The  Way  Out  is  Socialism.  UNDER  SOCIALISM, 
SOCIETY  WILL  OWN  THE  LAND,  AND  THERE 
WILL  BE  NO  RENT  TO  PAY." 

And  beginning  on  page  618  there  is  an  entire  chap- 
ter entitled  "How  to  Work  for  Socialism." 

This  is  Mills  the  in  an  who  night  after  night  spoke 
to  the  secret  caucus,  the  man  who  drew  up  law  after, 
law  which  was  passed  by  the  legislature  controlled 
through  the  secret  Caucus.  This  is  the  man,  who  with 
his  rotten  financial  record  behind  him,  helped  draw 
up  THE  BILL  CREATING  THE  BANK  OF  NORTH 
DAKOTA  WITHOUT  ANY  SAFEGUARDS  TO  PRO- 
TECT THE  PEOPLE  OF  THIS  COMMONWEALTH, 
This  is  the  man  who  consulted  with  other  boosters  of 


216  THE  NONP ARTISAN  LEAGUE 

taxes  and  helped  devise  a  system  of  taxation  which, 
IF  PUT  THROUGH,  WOULD  HAVE  FASTENED 
PURE  UNADULTERATED  FABIAN  SOCIALISM 
ON  THE  PEOPLE  OF  NORTH  DAKOTA. 

For  instance,  where  in  the  original  farmers'  pro- 
gram was  there  any  demand  for  Senate  Bill  43,  the 
first  half  of  which  is  as  follows : 

Be  it  enacted  by  the  Legislative  Assembly  of  the 

State  of  North  Dakota: 

\ 

1  Section  1.  Chapter  59  of  the  Laws  of  North  Dakota,  1917, 

2  is  here  amended  and  re-enacted  to  read  as  follows: 

3  All  real  and  personal  property  subject  to  a  general  prop- 

4  erty  tax,  not  exempted  by  law,  and  not  subject  to  any 

5  gross  sales  or  other  lieu  tax,  is  hereby  classified  for  pur- 

6  purposes  of  assessment  for  taxation  as  follows: 

7  Class  1.     Class  one  shall  include  the  fo" lowing,  which 
.8    'shall  be  valued  and  assessed  at  100  per  cent  of  the  full 

9     and  true  value  thereof; 

10  (a)  Ail  unused  land,  whether  mineral,  agricultural,  tim- 

11  ler,  site,  trackage  or  right-of-way,  or  lard  of  any  kind  or 

description. 

12  *,b)  All  railroads  and  other  public  utilities,  together  with 

13  franchises  and  patents,  and  all  real  and  personal  proper- 

14  ty  employed  in  connection  therewith. 

15  Class    2.   Class   two    shall   include   the   following,   w'hich 

16  shall  be  valued  and  assessed  at,  60  per  cent  of  the  full 

17  vaue  thereof; 

18  (a)   All  used  land;    provided,  that   for  the  purposes  of 

19  ^his  Act  the  term  "used  land"  shall  be  he'd  to  mean  lal 

20  'and  used  or  employed  beneficially  in  any  industry,  bus- 

21  iness,  except  land  owned  by  railroads  and  other  public 

utility  corporations;   provided  that: 

•  I)     Farm  homesteads,  not  to  exceed  in  area  640  acres, 
ther  the  entire  area  be  u-ed  or  not.  sha1!  be  consid- 
'l±     'red  used  land  for  the  purposes  of  this  Act. 

(2)   Homesteads  within  the  limits  of  any  village,  town 

26  or  city,  or  within  platted  sub-divisions  adjacent  thereto. 

27  not  to  exceed  in  area  two  acres,  or  in -value  $2,500.00  ex- 

lusive  of  improvements, 'whether  the  entire  area  be  u^- 
D9     rd  or  not,  shall  be  considered  used  land  for  the  purposes 
of  this  Act. 

From  line  22  on  the  abbve  you  will  note  that  if  a 
farmer  had  640  acres  of  land,  whether  it  was  used  or 
not,  it  was  to  be  considered  "used"  for  purposes  xof 
taxation  and  was  assessed  at  60  per  cent  of  its  true 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       217 

value.  IP  A  FARMER  WAS  INDUSTRIOUS  and  had 
a  large  number  of  children  and  wished  to  leave  each 
child  a  piece  of  land  and  saved  his  money  and  got  a 
quarter  section  more  than  the  640  acres,  he  would  be 
assessed  at  A  VALUATION  OF  100  PER  CENT  OF 
ITS  FULL  AND  TRUE  VALUE. 

Where  in  the  original  farmers*  program  was  there 
any  demand  for  Senate  Bill  44,  which  dealt  with  the 
exemption  of  property  from  taxation  and  Article  Ten 
of  the  proposed  law  being  as  follows: 

For  an  Act  to  amend  and  re-enact  Section  2078,  Compiled 
Laws  of  North  Dakota,  1913,  relating  to  the  exemption 
of  property  from  taxation.  *  * 

40  10.   Structures   and   improvements   used   as   homes   on 

41  town  or  city  lots,  to  the  amount  of  $2500,  provided  that 

42  that  the  total  value  of  such  structures  and  improvements 
be  not^in  excess  of  $3500. 

From  line  40,  you  will  note  that  if  there  were  three 
men,  Say  A,  B,  arid  C,  each  owning  a  house  in  the 
State  of  North  Dakota,  A  having  a  house  valued  at 
$2500,  B  having  a  house  worth  $3500,  and  C  having  a 
house  worth  $4000,  A  would  not  have  to  pay  any  taxes 
at  all.  B  would  have  to  pay  taxes  on  $1,000,  the  differ- 
ence between  $2500  and  $3500,  and  C  would  have  to 
have  to  pay.  taxes  on  the  entire  $4000. 

Senator  Mees,  one  of  the  best  tax  experts  in  North 
Dakota,  a  man  who  two  years  before  had  been  Chair- 
man of  the  Committee  on  Taxation,  took  his  home 
town  as  an  example— the  town  of  Glen  Ullin  in  Mor- 
ton County,  having  about  1500  population.  He  found 
that  in  the  town  there  were  only  twelve  houses  worth 
more  than  $3500;  that  there  were  twenty-two  that 
were  worth  between  $2500  and  $3500  and  that  the  rest 
were  worth  less  than  $2500.  In  .order  to  raise  the 
revenues  necessary  to  run  the  city  of  Glen  Ullin,  THE 
HOUSES  VALUED  AT  MORE  THAN  $3500  WOULD 


218  THE  NONPARTISAN  LEAGUE 

HAVE  TO  PAY  A     TAX    OF    APPROXIMATELY 
$500  A  YEAR. 

AND  THAT  IS  -WHERE  SENATE  BILL  94  CAME 

in,  the  first  section  of  which  is  as  follows: 

4 'No  real  property  shall  hereafter  be  sold  for  taxes. 
When  any  taxes  upon  real  property  shall  not  have 
been  paid  within  three  years  after  the  same  have  be- 
come delinquent  and  the  provisions  of  this  chapter 
with  reference  thereto  shall  have  been  compiled  with, 
THEN  SUCH  REAL  PROPERTY  SHALL  BECOME 
THE  PROPERTY  OF  THE  STATE  OF  NORTH  DA- 
KOTA UPON  THE  ENTRY  OF  THE  JUDGMENT 
OF  THE  DISTRICT  COURT  DECREEING  FEE 
SIMPLE  TITLE  TO  SUCH  PROPERTY  IN  THE 
STATE. " 

AND  THERE  YOU  HAVE  IT,  AT  LAST. 

Everyone  of  you  know  that  the  law  provides  that 
property  owned  by  the  State  shall  NOT  PAY  TAXES. 
The  State  of  North  Dakota  pays  no  taxes  upon  any 
state  school  land.  If  the  property  under  the  present 
law  is  sold  for  taxes,  this  sold  to  a  private  owner,  it 
keeps  on  paying  taxes,  and  the  Socialist  leaders  knew 
very  well  that  a  man  owning  a  four  orf  ive  thousand 
dollar  house  in  Glen  Ullin  or  any  place  else,  would  not 
pay  $500.00  taxes  on  it  per  year,  and  they  knew  that 
a  farmer  owning  800  acres  of  land,  and  paying  taxes 
at  60  per  cent  on  the  640  acres  would  not  pay  taxes 
in  the  amount  of  four  or  five  hundred  dollars  on  the 
additional  160  acres.  He  would  do  like  the  owner  of 
the  house  in  Glen  Ullin,  REFUSE  TO  PAY  THB 
TAXES  AND  LET  THE  LAND  GO  TO  THE  STATE. 

The  Socialist  leaders  and  their  advisors  knew  that 
as  soon  as  the  State  took  the  land  and  the  house, 
THAT  PROPERTY  CAME  OFF  THE  TAX  ROLLS 


"      ITS  BIRTH,  ACTIVITIES  AND  LEADERS 

and  the  result  would  be  that  the  property  that  was 
still  left  in  the  hands  of  private  owners,  THE  640 
ACRES  AND  THE  HOUSE  THAT  COST  $3500  OR 
LESS  WOULD  HAVE  TO  PAY  INCREASED  TAXES 
ENOUGH  TO  MAKE  UP  THE  DIFFERENCE. 

They  knew  likewise  that  these  increased  taxes  would 
soon  make  the  taxes  on  that  property  so  high  that 
owner  after  owner  would  be  unable  to  pay  them  with 
THE  RESULT  THAT  ULTIMATELY  THE  STATE 
WOULD  BE  THE  OWNER  OF  THAT  PROPERTY 
TOO. 

WHY  DIDN'T  THEY  PASS  THESE  BILLS? 

When  the  history  of  North  Dakota  is  written,  it 
will  recount  in  GLOWING  TERMS  THE  FIGHT  PUT 
UP  AGAINST  THESE  MEASURES  BY  MEN  LIKE 
SENATOR  FRED  MEES  OF  MORTON  COUNTY 
AND  HIS  ASSOCIATES. 

At  the  secret  caucus,  I  was  personally  present  when 
A.  C.  TOWNLEY  GOT  UP  ON  THE  PLATFORM, 
HOLDING  SENATE  BILLS  43,  44  AND  94  ALOFT 
TOGETHER  WITH  SOME  OTHER  TAX  BILLS 
AND  STATED  THAT  THESE  MEASURES  HAD 
BEEN  DRAWN  BY  THE  BEST  BRAINS  IN  THE 
COUNTRY  AND  THAT  HE  WANTED  THE  MEAS- 
URES PASSED  WITHOUT  "the  change  of  a  single 
comma  or  period." 

Was  the  Townlcy  who  was  speaking,  the  man  who 
was  a  friend  of  the  fanner,  a  friend  of  the  laboring 
man?  IT  WASN'T.  THE  DISGUISE  WAS  RIPPED 
FROM  HIM.  AT  LAST  HE  STOOD  BEFORE  US 
STRIPPED  BARE.  HYPROCISY  WAS  CAST 
ASIDE— the  man  speaking  WAS  TOWNLEY,  STATE 
ORGANIZER  OF  THE  SOCIALIST  PARTY  OF 
NORTH  DAKOTA! 


220  THE  NONPARTISAN  LEAGUE 

The  attempt  to  keep  control  of  the  schools  through, 
the  contest  over  Miss  Nielson  took  ON  A  NEW  SIN- 
ISTER, MEANING  and  some  of  us  state  officials  knew 
that  the  farmers  WHO  TRUSTED  US,  WHO  HAD 
ELECTED  US,  WHO  DEPENDED  UPON  US  TO 
DO  OUR  DUTY,  NEEDED  US  A  THOUSAND  TIMES 
MORE  THAN  EVER  THEY  DREAMED  THEY 
WOULD  AT  ELECTION  TIME.  We  created  a  senti- 
ment so  strong  that  the  SOCIALIST  LEADERS 
DIDN'T  DARE  go  through  with  their  program.  The 
bill  they  had  drawn  dealing  with  the  rental  value  of 
land,  the  bill  that  they  had  brought  to  Bismarck  to 
take  the  railroad  company  taxes  away  from  the  school 
districts  and  cities  through  which  were  running,  and 
turn  the  money  into  a  jackpot  WERE  ALL  LEFT  TO 
THEIR  FATES. 

THEY  WENT  AS  FAR  AS  THEY  DARED  TO  GO. 
HAD  THEY  AT  THAT  TIME  HAD  THE  HIGHLY 
ORGANIZED  NEWSPAPER  ORGANIZATION  IN 
NORTH  DAKOTA  SO  THAT  THEY  COULD,  AT, 
THAT  TIME,  HAVE  ACCUSED  THE  STATE  OFFI- 
CIALS OF  HAVING  SOLD  OUT  TO  THE  RAIL- 
ROADS, OIL  COMPANIES,  ETC.,  AS  THEY  AFTER- 
WARDS ACCUSED  US,  THESE  LAWS  WOULD  BE 
ON  THE  STATUTE  BOOKS  OF  NORTH  DAKOTA 
TODAY.  | 

And  in  other  states  where  the  farmer  vote  is  so 
much  smaller  and  the  labor  vote  so  much  larger  than 
in  North  Dakota — because  in  this  state  it  is  almost  in- 
fraitessimal  when  compared  to  the  farmer  vote,  IN 
THESE  OTHER  STATES  THEY  ARE  NOT  PUT- 
TING MANY  FARMERS  ON  THEIR  STATE  TICK- 
ETS. They  are  going  around  looking  for  men  like 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       221 

Fra/ier,  men  who  will  meekly  bow.  down  and  do  their 
bidding— Shipsteml  the  DENTIST  whom  they  are  run- 
ning for  governor  of  Minnesota  on  a  so-called  Far- 
mer-Labor ticket— IS  A  TYPICAL  EXAMPLE? 

Townley  and  Bo  wen.  candidates  for  the  Legislature 
on  the  Socialist  ticket  FOUND  THAT  AS  SOCIAL- 
ISTS they  could  not  put  their  program  over,  so  they 
changed  their  name  to  the  Nonpartisan  Political  Or- 
ganization League  and  went  out  getting  signers  to  the 
original  farmers'  program  which  called  for  the  follow- 
ing AND  NOTHING  ELSE. 

1.  State  Terminal  Elevators,  Flour     Mills,     Stock 
Yards,  Packing  Houses  and  Storage  Plants. 

2.  State  Hail  Insurance. 

3.  Single  Tax  on  Farm  Loands. 

4.  State  Inspection  of  Dockage  and  Grading. 

5.  Rural  Credit  Banks  operated  at  Cost. 

This  is  the  program  which  the  vast  majority  of 
Tnrmers  signed  when  they  joined  this  organization. 

The  farmers  of  North  Dakota,  however,  were  taken, 
oft'  their  guard— they  were  not  thinking  about  Social- 
ism. 

They  were  thinking  about  Treadwell  TwitchelL  and 
a  bunch  of  old  gangsters,  who  had,  in  defiance  of  their 
repeated  expression  at  the  polls  turned  down  the 
terminal  elevator- THEY  WERE  THINKING  OF 
THE  GRAIN  GAMBLERS  IN  THE  TWIN  CITIES, 
€HICAGO  AND  NEW  YORK— the  gamblers  who 
have  been  and  who  are  today  robbing  the  farmers  of 
Xorth  Dakota. 

They  were  thinking  of  the  control  of  the  elevators 
in  North  Dakota,  how  when  they  hauled  their  wheat 
to  a  town  boasting  of  several  elevators,  that  it  did  not 
make  much  difference  which  elevator  they  chose,  that 


222  THE  NONPARTISAN  LEAGUE 

THEY  PAID  THE  FAEMERS  JUST  ABOUT  WHAT 
THEY  PLEASED. 

The  farmers  were  tired  of  having  the  will  express- 
ed by  their  vote  at  the  polls  laughed  at;  they  were 
sick  at  heart  of  the  old  gang;  they  were  sick  of  Alex 
MeKenzie,  and  all  that  he  stood  for;  they  were  ready 
for  anything  for  a  change,  and  they  were  not  investi- 
gating whether  that  .-change  was  Socialism  or  Anar- 
chism—they changed  WITH  AN  OVERWHELMING 
TURN  OVER. 

The  vast  majority  of  the  farmers  who  joined  the  or- 
ganization are  not  Socialists.  It  was  the  leaders 
alone,  backed  up  by  the  old  Socialist  party  in  North 
Dakota,  aided  by  Socialist  spellbinders,  whom  they 
imported,  who  were  "putting  it  over,"  and  some  of 
the  very  men  whom  they  had  endorsed  for  office  did 
not  at  that  time  understand  the  real  situation. 

"I  had  and  I  still  have  a  copy  of  my  speech  of  eceept- 
ance  delivered  at  the  Fargo  Auditorium  in  April  when  I 
was  endorsed  for  Attorney  General.  Previously  the 
State  Enforcement  League,  The  Scandinavian  Total  Ab- 
stainance  League,  the  Woman's  Christian  Temerance 
Stockholders  of  the  Equity  Co-operative  Exchange  had 
endorsed  me  for  Attorney  General.  Some  of  the  very 
people  belonging  to  these  organizations  were  in  the 
audience  that  night  when  I  was  endorsed  by  the  Non- 
partisan  League.  Grangers  and  Society  of  Equity  men; 
were  there.  At  that  speech  I  pledged  myself  to  carryj 
out  the  farmers'  program  and  used  these  words:  "No3 
matter  what  may  happen,  no  matter  what  the  leadersj 
of  this  organization  may  do,  if  I  find  that  they  are  raenj 
who  are  not  representing  the  true  interests  of  the] 
farmers,  if  they  are  men  who,  instead  of  having  thej 
interests  of  the  farmers  at  heart,  are  but  their  ene-J 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       223 

niies,  I  will  fight  them."  Those  words,  prophetic  as 
they  were,  later  became  the  rallying  cry  of  thousands 
of  farmers  of  North  Dakota  who  do  not  believe  in  So- 
cialism. 

The  fanners'  program  called  for  certain  definite 
economic  changes.  The  farmers  wanted  to  get  a  fair, 
honest  price  for  his  wheat  and  other  grain— he  want- 
ed to  pay  only  his  just  share  of  taxes,  he  w.anted  a 
state  operated  hail  insurance  law,  and  he  wanted  rur- 
al credit  banks  operated  at  cost — that  was  their  pro- 
grm — not  Debs,  or  Mills,  or  O'Hare  or  Roylance  or 
any  horde  of  imperial  socialists ! 

The  North  Dakota  farmer  is  progressive.  He  wanted 
those  things  because  they  spelled  progress  for  him, 
but  the  farmers  of  North  Dakota  are  neither  anar- 
chists, athiests,  free  lovers,  nor  I.  W.  Ws.  The  farmers 
of  North  Dakota  hate  autocracy  and  nowhere  in  the 
platform  was  there  any  authority  given  to  the  So- 
cialist leaders  to  say  to  the  State  Auditor  of  North. 
Dakota,  Mr.  Kositzky,  as  Townley  did,  when  Kositz- 
ky  appeared  before  the  committee  to  protest  against 
an  increase  in  taxes: 

"Mr.  Kositzky,  your  place  is  up  on  the  hill  (where 
the  State  Capitol  is  located.)  You  are  not  elected  to 
make  laws.  You  were  elected  to  carry  them  out  after 
the  Legislature  passed  them.  GET  UP  THERE  AND 
STAY  THERE,  OR  BY  GOD,  I  WILL  TAKE  CARE 
OF  YOU." 

Or  a  few  days  later,  when  Townlev,  said  to  Kositz- 
ky,  when  Mr.  Kositzky  was  on  a  matter  of  business  de- 
livering two  warrants  to  two  members  of  the  Legisla- 
ture, sitting  on  the  floor  of  the  House: 

"Kosit/ky,  you  were  in  their  lobbying  against  the 
bill." 


224  THE  NONP ARTISAN  LEAGUE 

'•'I  was  not,"  replied  Kositzky. 

"You  were,"  screamed  Townley,  "and  I  will  see  to 
it  that  you  don't  come  back  here  two  years  from 
now. ' ' 

Or  when  Townley  said  to  Senator  Fred  Mees,  be- 
cause the  Senator  refused  to  betray  his  farmer  con- 
stituants,  "Go  home  and  if  necessary  lie  to  them  like 
a  horse  thief." 

Or  when  as  Attorney  General,  I  refused  to  bow 
down  before  William  Lemke,  the  Vice  President  and 
approve  a  bill  of  over  six  thousand  dollars  for  alleged 
services  and  costs  rendered  by  himself  and  his  associ- 
ate lawyers  in  a  lawsuit,  a  sum  to  which  they  were  not 
entitled  and  which  they  did  not  get,  or  when  I  refused 
to  tell  C.  J.  Olson,  a  league  representative  that  under 
the  constitution  he  need  not  consider  his  conscience 
which  he  feared  would  prevent  him  from  voting  for 
the  newspaper  bill,  or  when  I  refused  to  assist  them 
in  an  attack  on  Miss  Minnie  J.  Nielson,  and  a  dozen 
other  cases.  I  refused  them  the  same  as  any  other 
honest  lawyer  would  have  refused,  and  it  is  for  this 
reason  chiefly  that  in  violation  of  their  repeated  writ- 
ten promises  in  the  North  Dakota  Leader  and  Courier- 
News,  that  they  are  running  the  Vice  President  of 
the  League,  William  Lemke,  for  Attorney  General^ 
THEY  DARE  NOT  TRUST  ANY  ONE  ELSE  TO  PUT 
OVER  THE  DIRTY  WORK  AGAINST  THE  FAR- 
MERS. THEy  WANT  TO  BE  THE  LAW. 

It  is  easy  for  a  man  who  has  never  had  the  respon- 
sibility of  holding  a  position  of  highest  trust  to  call 
another  man  a  crook,  but  the  records  of  Townley  or 
Lemke  speak  for  themselves! 

EASY  MONEY,  TREMENDOUS  POLITICAL 
POWER,  AND  THEY  AND  THEIR  ASSOCIATES 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS     225 
ALWAYS    PLAYING"   THE    FARMER    FOR    A. 

SUCKER.  I,  a  farmer's  son,  my  sister  a  farmer's  wife, 
my  cousins,  aunts,  uncles  and  friends  farmers,  use 
this  term  in  no  disrespectful  sense ! 

I  KNOW  THESE  MEN— I  was  CLOSELY,  INTI- 
MATELY ASSOCIATED  WITH  THEM.  I  too 
thought  them  honest.  I,  too,  felt  they  were  sincere, 'I, 
too,  would  take  off  my  coat  AND  FIGHT  when  th^i 
honesty  of  purpose  was  challenged! 

But   reluctantly,   oh   so     reluctantly,     I     saw 
GREED  for  MoNFA",  for  POWER,  for  PUBLIC    <5® 
FICE  develop! 

I  saw  that  they,   not  the  farmers,     controlled     tuc 
Nonpartisan   Leairn< — that   under   Section    Six    of   the 
By-Laws  Townley  and  Lemke  and  Wood  could  in  cle- 
of  every   farmer  in  North  Dakota   keep  them- 
selves- in  office. 

I  saw   that   they,   not  the  farmers,     controlled     th;- 
•rs,   paid    for   by   the   fanners'    money— news 
-"d  by  them  to  praise  and  extol  Townley  an:! 
Lemke— and   damn   honest    criticism.    I   saw   these   pa- 
s' up  the  crooks   and  scoundrels   inside     and 
:    honest   men   for  daring  to  tell  the  truth — all  in 
the   name    of    I  )cmo<-racy !    [   saw   that   they,   not     th;- 
i'ariii"ifs,  controlled  ihe.  Consumers  United  Stores  Com- 
pany and  when  I  on  March  21st  made  a  motion  at  the 
Banking  Board  lo  have  the  farmers  run,  as  they  have 
the  stores  Company.  1hcir  newspapers  said  I  was  the 
i;oii-'my"  of  the   farmers   and  I've  heard   these     men 
iiieir  asso'-iates   talk   and  their  talk   is  along  the 
•  i!  the  following  letter  written  by  W.  W.  Liggett, 
still  on  the  Sate   payroll,  which   letter  is  copyrighted 
bv  Mr.  J.  W.  Brintoii: 


226  THE  NONP ARTISAN  LEAGUE 

October  8,  1919. 
"Mr.  Martin  F.  Blank, 

Hazen,  N.  Dak.  ^ 

My  Dear  Martin: 

I  have  looked  over  your  report  and  I  am  very  much.   • 
pleased  with  it  and  believe  that  if  you  continue  this 
work  you  can  make  mighty  good  money, 

In  fact,  Martin,  after  you  clean  up  Mercer  county, 
I  have  a  proposition  to  make  you  whereby  I  honest- 
ly believe  you  can  make  from  $50  to  $100  a  day  and  be 
engaged  in  pleasant  work,  inasmuch  as  you  will  be  go- 
ing around  the  state  and  only  calling  on  five  or  six  of 
the  best  Leaguers  in  every  county.  Some  of  our  sales- 
men have  made  as  high  as  $1500  to  $1700  a  month  and 
I  see  no  reason  why  you  cannot  do  exactly  as  well. 

Assuring  you  that  I  am  your  friend  and  want  you 
to  succeed,  I  remain, 

Very  sincerely, 

W..W.  LIGGETT, 

Manager   Publishers   National   Service  Bureau. 

MONEY— when  we  were  out  fighting  for  Humanity. 

MONEY— while  the  grain  gamblers  were  robbing  us. 

MONEY— EASY  MONEY— $1500  to     $1700     from 

"5  or  6  of  the  best  Leaguers  in  each  county."  WHAT  . 

A  DISGRACE. 

And  Liggett  in  the  employ  of  Townley  and 
Lemke. 

And  Liggett  still  on  the  State  payroll.  AND  THEY 
ARE  ALL  LIKE  LIGGETT. 

To  the  so-called  Socialist  leaders,  THE  FARMERS 
PROGRAM  (So-CALLED)  MEANT  POWER  AND 
MONEY,  AND  TO  GET  THESE  AND  TO  HOLD 
THEM  . 

These  men  and  their  newspapers  cry  continuously 
about  the  "profiteer"—!  say  LET. THEM  NAME  ONE 
LAW  THAT  THEY  HAVE  PASSED  TO  CURB  THE 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       227 

PROFITEER  IN  NORTH  DAKOTA!  FOR  FOUR 
YEARS  FRAZIER  HAS  BEEN  GOVERNOR— TWO 
YEARS  HE  HAD  TWO  THIRDS  OF  THE  HOUSE 
AND  SENATE  WITH  HIM— OVERNIGHT  THEY 
COULD  GIVE  RELIEF-THEY  COULD  PASS  LAWS 
LOWERING  THE  INTEREST  RATE— laws  to  put 
grain  gamblers  in  North  Dakota  out  of  business — laws 
punishing  profiteers  in  North  Dakota — why  didn't 
they? 

NOT  ONE  ANTI-PROFITEERING  STATUE  PASS- 
ED BUT  HOW  THEY  DO  TALK. 

To  accuse  honest  men  of  crime~to  deceive  the  read- 
ers of  their  newspapers— the  audiences  of  their  speak- 
ers— is  these  Socialist  leaders  a  mere  pastime! 

P.  E.  Halldorson  appointed  receiver  of  the  Scandina- 
vian American  Bank  put  up  a  $100,000  surety  bond — 
before  he  put  a  foot  inside  that  bank.  Yet  they  after- 
wards charged  that  he  or  his  lawyer  stole  a  $10,000 
bond !  BUT  they  didn't  sue  him. 

NO  SIR. 

They  were  to  wise  for  that !  They  knew  that  if  they 
sued  Mr.  Halldorson  would  prove  that  no  such  bond 
was  stolen  by  himself  or  any  one  working  with  him — 
AND  YOU  HAVEN'T  HEARD  A  WORD  MORE 
ABOUT  THAT  BOND  I 

JUST  PROPAGANDA. 

And  when  I  mention  propaganda  I  cannot  help  but 
think  of  the  little  mill  at  Drake. 

THE  DRAKE  MILL 

The  Drake  mill  is  an  industry  of  the  State. 

The  Anti-Liars  Law  applies  to  it. 

The  Socialist  speakers  are  lying  about  it  all  over  the 
orthwest! 

Under  penalty  of  going  to  the  penitentiary  for  one 
ear  if  what  I  say  is  not  true  I  pubblicly  state  the  fol- 


228  THE  NONPAETISAN  LEAGUE 

1  That  state  bonds  to  the  amount  of  approximately 
$25,500  were  sold  to  the  people  at  or  about  Drake  al- 
though the  price  for  the  mill  was  only  $20,000. 

2  That  since  the  mill  has  been  running  it  has  no1 
paid  the  farmers  from  12  to  50  cents  a  bushel  more 
for  wheat  than  farmers  could  secure  at  other  Nortt 
Dakota  points. 

3  That  since  the  mill  has  been  running  it  has  no' 
sold  flour  at  50  cents  to  one  dollar  lower  than  floui 
could  be  purchased  at  other  North  Dakota  points. 

4  .  That  the  State  operated  mill  has  not  been  as  sue 
cessfully  and  profitably^  operated  as  first  class  mill 
privately  owned. 

5  That  the  capacity  of  the  Drake  mill  is  only  12^ 
barrels  a  day. 

And  I  make  all  the  five  statements  above,  with  the 
penitentiary  staring  me  n  the  face. 

Why? 

Because  I  am  in  favor  of  carrying  out  the  mill  of  th 
people  as  repeatedly  expressed  at  the  polls1  I  wan 
the  mills  at  Grand  Forks  conducted  NOT  SECRETL" 
but  openly — by  a  nonpolitical  Board  of  Producers  am 
Consumers  EMPLOYING  EXPERTS.  Politicians  o: 
Socialist  leaders  have  no  right  to  make  the  mill  a  pol: 
tical  football — the  people  want  it  out  of  politics — trie< 
on  its  merits — if  it  succeeds  they  want  more  state  mil] 
—if  it  fails  they  FIGURE  THE  MONEY  SPENT  II 
EXPERIMENT  WEDD  INVESTED !  But  conductin 
the  Drake  mill  SECRETLY  IS  ONLY  AIDING  TK 
GRAIN  GAMBLERS  IN  ROBBING  US! 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       229 
CHAPTER  XIV 

NEEDED— A   GOVERNOR   TO   PROTECT  THE 
PEOPLE 

';HAIL,  HAIL  THE  DICTATORSHIP  OF  THE 
PROLETARIAT."  How  often  in  the  history  of  the 
ons  have  these  words  been  shouted  forth  in  ignor- 
frenzy  on  street  corners,  in  dingy  halls,  in  secret 
sses -and  in  socialistic  gatherings,  and  how  invar- 
y  has  that  cry  of  "Hail,  Hail  the  Dictatorship  of 
Proletariat"  met  with  disaster;  ruined  cities, 
mated  communities,  impoverished  countries,  all 

ations  to  historical  failures. 

-  Today  there  is  abroad  in    these     beloved     United 
»£  ours,  the  same  insidious  influence  for  evil, 

•  a  thousand  times  better  organized  in  the  interests 
•  Ishevik  propaganda  than  ever  before 

Report  and  Hearing  of  the  Sub-committee  on  the 
•  ry  of  the  United  States  Senate,  submitted  pur- 
suant to  resolutions  307  and  439.) 

ions  of  dollars,  newspapers     by     hundreds     of 

.(Is  in  all  languages,  agitators  of  almost  every 

tality  and  description  are  working  secretly  and 

openly  by  day  and  by  night  TO  OVERTHROW  OUR 

rABTJSHED     SYSTEM       OF       GOVERNMENT. 

TRULY    THIS    CHALLENGES   THE   RED     BLOOD 

.  1  { Y  AM  MR  1C  AN  CITIZEN. 

\vlio  read  hislory  sometimes  wonder  whether  the 

;ui  people  will     make  the     mistake  of  -the  old 

citizens,  whether  here  too  luxury,,  dissipation, 

avarice  and  disregard  of  law  will  result  in  disintegra- 

d  of  money  and  .  avariciousness     have     taken 

•  r  toll  in  North  Dakota,  but  not  as  much  proper- 


230  THE  NONP ARTISAN  LEAGUE 

tionately  as  in  some  other  states.  We  have  men  in 
North  Dakota,  some  of  whom  came  here  poor,  men 
who  by  their  hard  work  and  the  grace  of  God  have  ac- 
cumulated a  hundred  thousand  dollars  worth 
of  property,  and  many  of  these  men  live  and  die, 
DOING  JUST  AS  LITTLE  AS  POSSIBLE  FOR 
THEIR  STATE. 

Scores  of  them  are  entirely  ignorant  of  political 
conditions  in  the  state,  hundreds  of  them  know  so 
little  about  the  history  of  our  state  that  they  cannot 
name  the  governors  we  have  had,  thousands  of  them 
know  almost  nothing  about  the  constitution  of  the 
state. 

MONEY  to  most  of  these  men  IS  THEIR  GOD. 
LIBERTY,  FREEDOM  OF  SPEECH,  THE  RIGHT 
OF  FREE  ASSEMBLAGE  TO  THEM  ARE  BUT 
DIM  HAZY  TERMS,  except  when  they  affect  GOOD 
BUSINESS.  These  men  work  from  seven  in  the  morn- 
ing until  eleven  at  night— ACCUMULATING  MONEY 
and  the  OLDER  they  get  THE  LONGER  THEY 
WORK.  Their  objective  is  an  occasional  trip  to  Flor- 
idea  or  California,  AND  MAKING  MONEY..  Contri- 
bution to  churchs  constitutes  the  major  portion  of  their 
charity. 

To  men  like  these  the  cry  of •" Hail,  Hail  to  the 
Dictatorship  of  the  Proletariat"  comes  as  a  stunning, 
overwhelming  surprise.  They  are  totally  unprepared 
to  cope  with  reckless  irresponsible  agitators  who  rave 
about  evils  that  never  existed,  who  magnify  economic 
ills  which  the  people  have  suffered,  and  are  suffering, 
who  paint  rosy  pictures  of  prosperity  and  plenty  to 
the  multitudes  and  who,  if  followed,  will  bring  but 
ruin,  want  and  impoverishment  to  their  converts 

Here  in  North  Dakota  which  the  SOCIALISTS  OP 
THE  UNITED  STATES  HAVE  CHOSEN  FOR  THE 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       231 

BATTLE  GROUND,  here  where  have  come  Debs,  sev- 
eral times  candidate  for  the  United  States  Presidency, 
Russell,  former  candidate  for  Mayor  New  York  City, 
Walter  Thomas  Mills,  candidate  for  the  United  States 
Senate  from  California,  Kate  Richards  O'Hare,  chair- 
man of  the  Chief  Committee  of  the  Socialist  party; 
Arthur  Le  Seuer,  former  candidate  for  the  Presidency 
of  the  United  States,  Meitzen,  former  candidate  for 
governor  of  Texas,  Bill  Haywood,  the  organizer  of  the 
L  W.  W.,  David  C.  Coates,  former  lieutenant  gover- 
nor of  Colorado,  the  man  who  in  1905  helped  Haywood 
organize  the  I.  W.  W.,  Carl  D.  Thompson,  the  head  So- 
cialist of  the  public  ownership  league  of  the  United 
States,  Van  Lear,  former  Mayor  of  Minneapolis,  Max 
Eastman  of  New  York  City,  the  leading  international 
Socialist  in  the  United  States,  and  hundreds  of  Social- 
ist agitators,  lecturers  and  organizers  and  authors  of 
Socialist  books— here  we  are  FACE  TO  FACE  WITH 
THE  ENEMY— THEY,  NOT  US,  CHOSE  THE  BAT- 
TLE GROUND ! 

WE  COULD  NOT  EVADE  THE  FIGHT  IF  WE 
WOULD. 

These  have  ALL  come  here,  ALL  THOROUGHLY 
PREPARED  TO  ARGUE,  AGITATE,  DEBATE  and 
whom  have  they  met  to  off-set  their  attack  on  the 
American  system  of  government? 

How  many  business  men  in  North  Dakota,  rich  or 
poor,  are  competent  to  meet  these  men  in  argument 
or  debate?  How  many  farmers,  how  many  laboring 
men,  how  many  lawyers,  have  chosen  to  accept  the 
gauntlet  of  battle  thrown  down  by  this  horde  of  So- 
cialists WHO  HAVE  SEIZED  THE  GOVERNMENT 
OF  THIS  COMMONWEALTH,  ITS  PUBLIC  MON- 
EY, ITS  VERY  LIFE? 

The  small  fanner,  the  laboring  man,  the  lawyer,  the 


232  THE  NONPARTISAN  LEAGUE 

banker,  the  merchant  have  always  depended  upon  the 
officials  whom  they  elect  to  office,  and  chiefly  upon 
the  Governor,  to  run  the  affairs  of  the  State,  BUT  IN 
NORTH  DAKOTA  THE  SOCIALISTS  HAVE  CON- 
TROL  OF  THE  GOVERNOR. 
When  the  interests  of  the  common  people  and  the 

^alists  conflict,  as  they  have  conflicted,  the  gover- 
nor is  lined  up  with  the  Socialists.  The  result  is  going 
to  be  WHAT? 

It  all  can  terminate  in  but  one  way — North  Dakota 

-ens  will"  awaken,  business  men,  farmers,  laborers 
wiii  devote  as  much  TIME  TO  OUR  AM- 
ERICAN SYSTEM  OF  GOVERNMENT  AS  THEY 
HAVE  TO  MAKING  MONEY.  Wealthy  farmers  and 
business  men  will  stop  making  money.  They  will  say 

'lemselves.  "I  am  worth  $100,000.  I  have  enough  for 

family  and  myself.  I  am  fifty-five  years  of  age,  for 
fifty-five  years  this  government  has  protected  me. 
THESE  LAST  FEW  YEARS  OF  MY  LIFE  AND 

THOUSANDS  OF  DOLLARS  OF   MY   MONEY   i 

;,L  DEDICATE  TO  MY  STATE  AND  COUNTRY. 

FOR  EVERY  NEWSPAPER  CONTAINING  LYING 

Ml'AOANDA,   we   will     PUBLISH     TWO,    .FOR 

I-:RY  SOCIALIST  AGITATOR,  WE  WILL  FURT 
SH  A  DOZEN  NORTH  DAKOTA  CITIZENS  TO 
{RY  THE  TRUTH  TO  THE  PROLETARIAT. 

SMan  for  man,  brain  for  brain,  WE  WILL  FIGHT 
PRESERVE   THOSE     THINGS     WHICH     OUR 
ivK  FATHERS     FROM     RUSSIA,     FROM     GER- 
MANY,    FROM     ENGLAND,     FROM     SCOTLAND, 
Iplo:\r  NORWAY;  FROM  SWEDEN;  AND  FRANCE, 
!)  FROM  ALL  THE  COUNTRIES  CAME  TO  EN- 
.10  Y— LIBERTY.  '':*?      ~  ' 

.T.ou  can  have  no  liberty  if  you  cannot  chose  un- 
trammeled  the  men  who  are  to  govern  you.  You  can- 
not' have  liberty  when  Socialists,  Republicans^  Dem'o- 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       233 

crats  or  any  one  else  has  control  of  a  political  mach- 
ine WHICH  IS  STRONGER  THAN  THE  PEOPLE 
THEMSELVES.  A  machine  which  in  any  county  in 
North  Dakota  today,  over  night,  can  create  hundreds 
of  jobs  and  fix  their  compensations.  A  machine  which 
can  use  millions  of  dollars  of  public  money  in  North 
Dakota  to  finance  those  jobs.  A  machine  which  can 
import  and  place  on  the  state  payroll  the  leading  So- 
cialists, not  only  from  the  United  States,  but  from 
foreign  countries.  A  machine  so  powerful  that  IT 
CAN  ATTACK  COURTS  WITH  IMPUNITY,  frighten 
business  men  with  loss  of  livlihood,  terrify  farmers 
by  their  amalgamation  with  the  I.  W.  W.,  threaten 
labor  with  the  ghost  of  unemployment  and  mislead 
average  men  by  scores  of  newspapers  containing 

A  machine'  so  powerful  that  no  individual  alone  can 

>tand  it. 

A  machine  managed  by  men  without  honor,     men" 
i  bloodedly  unscrupulous,  men  ignorant  of  history, 
:   without   any  regard  for  your  ruin  or  mine,  men 
tout   political   morals,   and   wanting   in   ideals     of 
•  -•ility  or  right.  Men  not   unlike  those  agita- 
-  who  will  go  into  enormous  factories,  paying  .the 
;ind   say  to   the   employees,   "THIS  IS 
!'R    FACTORY,    SIEZE    IT."— Ignorant    agitators 
•  n't  tell  those  employees  Uiat  if  all  industries 
-  >  sir/rd  thai  instead  of  high  wages  and  prosper- 
•  lioy  v  ill  have  suffering,  starving,  ill  clad,  lain. 
lies  on  their  hands. 

B       SAY  SOME  FARMERS,  WHAT  HAVE  WE 

KKAK  FROM  THE  SOCIALISTS,  WE  ARE  NOT 

1 A  LISTS.  \vi«;  ARE  NOT  I.  W.  W?S.,WE  HAVE 

/ARMKRS'   ORGANIZATION,   THE   POLITICAL 

MA«'Iil\i;    is   OTKS,   THE   LEADERS   AUlC   CHOS- 


234       THE  NONP ARTISAN  LEAGUE 

EN  BY  US,  WE  CAN  REMOVE  THEM  AS  EASILY 
AS  WE  ELECTED  THEM. 

CAN  YOU? 

I  SAY  YOU  CANNOT. 

I  say  that  you  are  BOUND,  CHAINED,  HALTER- 
ED and  TIED.  I,  your  Attorney  General,  the  man 
whom  you  elected  because  you  TRUSTED  ME,  I  say 
you  have  no  more  to  say  about  this  organization  run 
by  the  Socialists  than  have  the  natives  of  the  Phil- 
ippines. Read  the.  by-laws  of  your  articles  of  associa- 
tion, read  Section  Six  which  provides  that  this  organ- 
ization shall  be  run  by  three  men,  Townley,  Lemke, 
and  Wood,  two  of  them  as  you  know,  men  who  ran 
for  office  on  the  Socialist  ticket,  and  Lemke,  the  per 
&onal  attorney  for  Townley.  They  run  the  organiza 
tion — you  cannot  get  rid  of  them. 

Section  6: 

The  National  Executive  Committee  shall  consist  of 
three  members,  one  of  whom  shall  be  the  chairman 
thereof.  The  first  national  executive  committee  shall 
consist  of:  A.  C.  Townley,  who  shall  be  chairman  of 
the  national  executive  committee  and  president  of  the 
National  Nonpartisan  League,  and  he  shall  hold  his 
office  for  a  period  of  two  years  from  January  1,  1917 ; 
William  Lemke,  who  shall  hold  his  office  for  a  period 
of  .four  years  from  said  date;  and  F.  B.  Wood  who 
shall  hold>  his  ^office  for  a  period  of  six  years'  from  said 
date. 

Thereafter,  at  the  end  of  each  two  year  period,  the 
NATIONAL  EXECUTIVE  COMMITTEE  (Townley, 
Lemke  and  Wood)  SHALL  NOMINATE  ONE  PER- 
SON as  A  CANDIDATE  TO  SUCCEED  THE  MEM- 
BER OP  THE  COMMITTEE  WHOSE  TERM  EX- 
PIRES. Such  nomination  subject  to  the  approve7  of 
the  national  committee. 


ITS  BIETH,  ACTIVITIES  AND  LEADERS       235 

(The  "national  committee"  of  each  state  is  origin- 
ally appointed  by  Townley,  Lemke  and  Wood.)  And 
so  when  Townley  -s  ter  mexpired  January  first,  1919r 
Townley,  Lemke  and  Wood  renominated  Townley— 
and  then  us  members  were  asked  to  " ratify*' — with 
ONE  NAME  ON  THE  BALLOT ! 

OR  HEAD  SECTION  14  which  provides  that  in  case 
of  the  death  of  any  one  of  these  three  men  or  in  ease 
of  vacancy  THEY,  NOT  YOU,  select  the  man  to  fill 
the  vacancy. 

ALL  you  do  is  to  FURNISH  THE  VOTE  AND  PAY 
THE  MONEY.  THEY  PICK  THE  OFFICERS  AND 
SPEND  THE  MONEY. 

And  when  they  pick  the  officers  they  pick  Social- 
ists or  radicals  who  are  responsible  TO  THEM— NOT 
YOU. 

And  when  you  go  out  among  your  neighbors  and 
protest  you  are  called  A  CROOK  AND  A  LIAR. 

And  when  the  man  you  elected  to  office  goes  out 
and  protests  he  is  called  an  ambitious  man  looking  for 
office,  a  taker  of  bribes,  a  crook,  a  thief,  and  a  scoun- 
drel. 

Liberty— you  have  none,  YOU  ARE  SLAVES- 
slaves  to  a  system  which  is  fooling  the  people  by  ly- 
ing newspapers. 

They  pay  an  organizer  out  of  YOUR  money  to 
come  to  YOUR  house  and  lyingly  tell  you  HOW 
YOUR  NEIGHBOR,  WHOM  YOU  ELECTED  RAIL- 
ROAD COMMISSIONER,  WHOM  YOU  HAVE 
KNOWN  FOR  YEARS,  HAS  SOLD  YOU  OUT. 

They  send  another  man  to  get  your  money  to  buy 
a  newspaper— a  paper  which  YOU  DO  NOT  CON- 
TROL but  WHICH  IS  IN  THEIR  CONTROL,  and 
which  is  used  by  them  against  YOU  TO  RUIN  YOU. 

They  use  your  money,  the  very  notes  you 


236  THE  NONP  ARTISAN  LEAGUE 

to  JEOPARDIZE  YOUR  BANKS  and  to  help  pay 
inen  like  Mills  who  advocates  that  THE  GOVERN- 
MENT,  NOT  YOU,  SHOULD  OWN  THE  LAND; 
THAT  YOUR  FARM  SHOULD  BE  THROWN  INTO 
A  JACKPOT,  be  owned  in  common,  that  you  should 
become  a  tenant,  not  a  RENTER,  NOT  A  FREE 
MAN  MAKING  A  CONTRACT  WITH  ANOTHER 
FREE  MAN  TO  FARM  HIS  LAND  for  him  at  half 
crop,  BUT  THE  OCCUPIER  OF  LAND  OWNED  BY 
THE  STATE,  and  "The  State"  will  continue  to  be 
a  bunch  of  Socialists  who  USE  YOUR  TAXES  AND 
MONEY  TO  KEEP  THEMSELVES  IN  OFFICE  AND 
TO  COMPEL  YOU  TO  PAY  HIGHER  TAXES*. 

And  when  you  think  you  CAN  VOTE  THEM  OUT 
YOU  CANNOT.  You  will  find  arrayed  against  your- 
selves the  political  MACHINE  YOU  HELPED-  TO 
CREATE.  The  Bank  of  North  Dakota  'with  its  mil- 
lions of  money  and  gangs  of  appraisers,  the  Hail  In- 
surance department  with  its  adjust ors.  the  Home 
Building  Association  with  its  hundreds  of  employees,' 
the  Mill  and  Elevator  Association  with  its  -quota  of 
buyers,  grain  dealers  and  experts,-  the  Immigration' 
Department  with  its  "ei&ployees,  the  Fish  and  Game 
Board  with -its  late  fourteen  .hundred  deputies  and 
special  deputies,  and  crews  from  the  other  ^(fepart- 
ments  consisting  of  men  who 'are  either SOCIALISTS 
OR  PERSONS  IN  THE  INDIRECT  EMPLOY  OF.' 
THE  SOCIALISTS,  men  and  women  Avh.»r  livUhood 
depends  in  most  cases  upon  their  jobs,  men.  TRAV- 
ELING ALL  OVER- THE  STATE  :AT  '  •<*>  MUCH 
PER  DAY  AND  SO  MUCH  PER  MIL-E' AND  YOF. 
WHO  PAY  THE  BILLS,  YOU 'ARE  TOE  SLA \ 
an  you  today  examine  the  Mill  and  Elevator  A- 
— to  ascertain  whether  there  are  "profits f?  there  or 
Aether  there  are  none?  WHY  SHOULD  YOU,  THE 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS 

TAXPAYERS,  BE  COMPELLED  TO  TAKE  THE 
WORD  OF  A 'SOCIALIST 'BANK  EXAMINER  AP- 
POINTED BY  FRAZIER?  The  men  you /elected  ex- 
amine  the  finances  of  the  insane  asylum,  the  twine 
plant,  the  various  normal  schools,  the  Agricultural 
College  and  the  University,  which  between  them  han- 
dle several  millions  of  dollars  every  biennial  period 
— why  shouldn't  these  same  men  be  allowed  to  exam- 
ine the  additional  industries? 

WHY  SHOULD  YOU  BE  COMPELLED  TO  TAKE 
THE  WORD  OF  MEN  WHO  HAVE  REPEATEDLY 
LIED  TO  YOU  ON  THE  IMPORTANT  matters  of  the 
government  of  your  state? 

Can  you  today  examine  the  Mill  and  levator  Asso- 
ciation to  ascertain  whether  these  men  are  telling  the 
truth?  When  they  tell  you  that  they  are  selling  flour 
for  less  than  you  can  buy  it  anywhere  else,  and  paying 
you  more  for  your  wheat,  shouldn't  you  have  the 
right  to  ascertain  whether  or  not  this  is  just  the  plain 
political  cheap  clap  trap  of  lying  demogogues  and 
crooks? 

Can  you  examine  the  Home  Builders  Association  to 
ascertain  whether  the  State  of  North  Dakota  is  mak- 
ing or  losing  money  on  this  transaction,  or  MUST 
:YOU  TAKE  THE  WORD  OF  MEN  WHOM  THE  SO- 
CIALISTS HAVE  PLACED  IN  CONTROL,  AND 
RUN  THE  RISK  OF  BEING  CALLED  A  CROOK  IF 
YOU  DARE  QUESTION  THEIR  STATEMENTS? 

Why. should  everything  about  -these  industries  BE 
SECRET? 

WHY  THE  SECRECY? 
WHY  IN  HEAVEN'S  NAME,  WHY? 
THEY   TELL  US  THESE   INSTITUTIONS     ARE 
FOR  THE  BENEFIT  OF     THE     PEOPLE,     THAT 
THEY  ARE  WORKING  OUT  WELL,  THAT  IN  A 


238       THE  NONP ARTISAN  LEAGUE 

FEW  DAYS  THEY  MAKE  ENORMOUS  AMOUNTS 
OF  MONEY,  THAT  THE  PROFITS  ALL  THE  TIME 
ARE  LARGE,  THAT  THE  TAXPAYERS  ARE 
BENEFITED. 

WHY,  THEN,  IF  ALL  THESE  THINGS  ARE 
TRUE  SHOULD  NOT  THE  TAXPAYERS  BE  AL- 
LOWED TO  SEE  FOR  THEMSELVES  THE 
AMOUNT  OF  THE  BENEFIT  TO  THEIR  POCKET- 
BOOKS? 

The  Governor  whom  you  trusted,  the  governor  who 
betrayed  you,  the  governor  whose  smiling  smile  was 
in  REALITY  THE  HIDIOUS  MASK  OF  AUTOCRA- 
CY, has  issued  the  order  that  your  BANKING  BOARD 
elected  by  you,  has  no  authority  in  banks— that  the 
SOCIALIST  WHOM  HE  APPOINTED,  ALONE, 
SHALL  INVESTIGATE  THE  PUBLIC  INDUSTRIES 
OF  NORTH  DAKOTA. 

YOU  ARE  KEPT  IN  IGNORANCE? 

You  are  asked  to  trust  Townley  and  Lemke  and 
Frazier  who  have  repeatedly  lied  to  you,  who  have 
betrayed  you. 

You  are  asked  to  trust  the  Socialists  whom  they 
have  imported. 

You  are  asked  to  damn  any  state  officer  who  re- 
fuses to  take  their  orders. 

You  are  asked  to  hand  the  organizers  more  money. 

You  ar^  asked  to  pay  increased  taxes. 

You  are  asked  to  pledge  THE  STATE'S  CREDIT 
TO  MILLIONS  AND  MILLIONS  OF  DOLLARS. 

And  all  in  the  name  of  a  FARMERS'  ORGANIZA- 
TION— NOT  RUN  BY  THE  FARMERS— BUT  BY 
THE  SOCIALISTS. 

What  the  people  of  North  Dakota  need,  farmers, 
business  men,  laborers,  all  o'f  you,  IS  A  GOVERNOR— 
a  governor  backed  up  by  an  independent  legislature 


ITS  BIRTH,  ACTIVITIES  AND  LEADERS       239 

who  will  say  to  the  Socialist  leaders  in  North  Dakota, 
"You  have  used  the  North  Dakota  funds,  the  North 
Dakota  people,  the  North  Dakota  Industries,  the 
North  Dakota  Credit,  AS  MUCH  AS  YOU  ARE  GO- 
ING TO. 

We,  THE  PEOPLE,  ARE  GOING  TO  RUN  THE 
STATE  OF  NORTH  DAKOTA  OURSELVES.  Instead 
of  SLAVES,  we  are  going  to  be  MASTERS' 

Instead  of  having  you  run  the  Bank  of  North  Da- 
kota, WE  will  appoint  a  board  of  North  Dakota  citi- 
zens to  run  it  for  us,  a  board  that  will  be  OUT  OF 
POLITICS,  a  board  that  will  have  on  it  the  BEST 
FARMERS,  THE  BEST  LABORERS,  THE  BEST 
BUSINESS  MEN  WE  CAN  GET,  men  some  of  them 
worth  $100,000,  who  wish  to  devote  the  last  years  of 
their  lives  to  MAKING  THE  BANK  OF  NORTH  DA- 
KOTA A  SUCCESS. 

Instead  of  having  you  Socialists  run  the  Mill  and 
Elevator  Association,  we  are  going  TO  APPOINT 
A  BOARD  OF  FARMERS  AND  LABORING  MEN 
TO  RUN  IT  FOR  US— a  board  that  will  let  us  ascer- 
tain the  truth — a  Board  that  will  have  all  the  view- 
points of  the  Proletariat. 

You  could  have  placed  the  Bank  of  North  Dakota, 
the  Mill  and  Elevator  Association,  the  Home  Build- 
ing Association,  all  the  industries  of  North  Dakota, 
IN  THE  HANDS  OF  THE  FARMERS  AND  BUSI- 
NESS MEN.  YOU  COULD  HAVE  GIVEN  THESE 
INDUSTRIES  TO  US  AND  TAKEN  THEM  OUT  OF 
POLITICS. 

You  did  not.  WHY? 

Was  it  because,  as  Townley  said,  that  if  WE  con- 
trolled these  industries  OURSELVES,  instead  of  the 
SOCIALISTS  controlling  them,  he  would  no  longer  be 
able  to  collect  $18.00  a  piece  from  us?  That  THE 


240     _  THE  NONPARTISAN  LEAGUE 

REASON  for  paying  the  $18.00  would  be  gone! 
WASN'T  IT  BECAUSE  THE  SOCIALIST  POLITIC- 
AL MACHINE  WOULD  HAVE  COLLAPSED? 

We  say  to  the  Socialist  horde— WE  THE  FARMERS 
OF  NORTH  DAKOTA,  THE  LABORING  AND  BUS- 
INESS HEN  OF  NORTH  DAKOTA,  with  boards  of 
our  own  appointment  in  charge  of  these  industries, 
we  will,  by  the  hiring  of  experts  to  run  them  along 
nonpolitical  lines,  make  a  success  of  the  Industrial 
Democracy  which  we  thought  we  were  getting  when 
we  gave  Governor  Frazier  87,000  votes  to  20,000  in 
1915! 

WE  WILL  ESTABLISH  AN  INDUSTRIAL  DE- 
MOCRACY SO  DESIRABLE  THAT  MINNESOTA, 
MONTANA,  WISCONSIN,  COLORADO,  AND  ALL 
THE  REST  OF  THOSE  STATES  THAT  ARE  REP- 
RESENTED BY  STARS  IN  THE  FLAG  OF  THIS 
COUNTRY,  will  follow  it,  and  in  unison,  without  any 
change  in  our  splendid  system  of  American  Govern- 
ment, WE  WILL  CRY,  "HAIL  HAIL  TO  THE  DIC- 
TATORSHIP OF  THE  PROLETARIAT." 

A  PROLETARIAT,  consisting  of  EVERY  HONEST 
MAN,  WOMAN  AND  CHILD  IN  NORTH  DAKOTA. 
A  PROLETARIAT  THAT  HAS  RESPECT  FOR 
BRAIN,  FOR  ENERGY,  FOR  INDUSTRY,  FOR 
BRAWN,  FOR  LABOR,  BUT  WHICH  WILL  NOT 
TOLERATE  SENSELESS,  RELENTLESS,  RE- 
MORSELESS  AGITATION  OF  SOULLESS,  UN- 
SCRUPULOUS, ATHIESTIC  SOCIALISTS. 


I 


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